I see you also think that I could rent an apartment for less than the $800/month I pay for my mortgage and that the $60,000 would go to investments rather than rent? Interesting. I'm choosing to increase my housing expenses temporarily in order to lower them in the long run. Paying rent for the next 50 years is going to be a LOT more expensive than aggressively paying down a mortgage.KlangFool wrote: ↑Fri Sep 15, 2017 11:59 am
<< Many of us have to. My gross income is $60,000. You can't get a house in my town for less than $180,000.>>
You do not have to buy a house. You choose to buy a house. You could rent an apartment or something.
<< But we put $60,000 down, so our loan is actually $149,000 or 2.5 times gross income. Sometimes you just gotta do what you can.>>
There is an opportunity cost of 60K. That 60K could earn 6% to 8% for you. It is between $300 to $400 per month.
You choose to increase your housing expense by buying a house. After that, it is very hard to save any money. I hope it is worth it for you.
It's all about cash flow in retirement. Expenses then have to be rock bottom. If I have an outstanding mortgage, I cannot retire. If I have monthly rent payments, I cannot retire. The only way to retire is to have expenses down to less than $1,000/month, which cannot be done unless you own a house outright.
That's why I waited until I had 30% down. It's all about cash flow. Gotta get the mortgage payments down to what rent would be, without sacrificing our 20% of gross income invested for retirement. So, no, it's not "very hard to save any money". I know this is the part where you're going to brag that you save 30% of gross and live in a shoebox, but that's a lot easier when you earn three times as much as me.