Quote:
Originally Posted by squiggs96
This is why our country is getting into financial problems. They think a mortgage is not a debt. Just because you house is worth more today than you owe, doesn't mean you don't owe the bank the debt. If your car is worth more than you owe, and you still owe on it, than you have some debt. You are in a net equity position, but still have debts. If you house or car is set on fire, you still owe somebody the balance owing.
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The point people are trying to make is that everyone here is looking at having a mortgage a "40 years 0% down". Which is just patently false.
Mortgages are some of the cheapest ways to borrow money since they are a secured against an asset. Aggressively paying down a mortgage that you are paying 4% interest on vs. investing in the stock market where returns can be, in most cases, much greater than 4% is much smarter.
Being "in debt" is such a general and misleading term that it's ridiculous to get worked up about it, you need to dig much deeper to find out what someone's NAV is.