Middle class homebuyers taking $7k mortgages planning to later refinance down

Re:Middle class homebuyers taking $7k mortgages planning to ... by BaseballPhysics on Friday July 21, 2023 @11:35PM (#36822974)

This is incredibly financially unsound advice. A mortgage is the cheapest, most secure debt most people will have. Even today, with current interest rates, if your goal is to buy a home, it is far more financially sound to take out a mortgage and invest your liquid cash.

Of course the more fundamental question is, should you buy a home at all? And that's a complex decision. But if you do make that decision, sinking significant liquid funds into property is generally speaking a terrible financial decision.

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Re:Middle class homebuyers taking $7k mortgages planning to ... by throwawaybbq1 on Saturday July 22, 2023 @07:10AM (#36825250)

I am not good at investing (lost money every single time I've tried). Liquid cash gets spent. I am paying off my 5 year fixed mortgage as fast as I can, as I will be up for renewal at the end of next year.

Some people don't have the financial savvy or time to optimize. One size does not fit all.

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Re:Middle class homebuyers taking $7k mortgages planning to ... by BaseballPhysics on Saturday July 22, 2023 @07:32AM (#36825357)

And that's why normies investors shouldn't be actively investing (I.e. picking individual stocks).

Dump your money into an all-market index fund and forget about it for 25 years. This requires zero "savvy" and not a lot of time. It does require a bit of research to develop some essential financial knowledge, but that's something everyone can benefit from.

One size may not fit all, but it absolutely fits most, and my bet is, no offense, you're actually not that special (I know I'm not).

[ Parent | on HN ]