Quote:
Originally posted by Porsche-O-Phile
It's an easy decision for me: I can't afford 20% of anything I'd want to live in out here and I refuse to take a sucker loan like so many other dip****s have done in recent years. As such, I pay down my debt and continue to put money into savings and investments. Seems to be working okay - I'm wealthier now than I've ever been in my life. Still much room for improvement, but I'm glad it's moving in the right direction (finally) after years of getting screwed.
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If you really think you're gonna save up a 20% down payment in So. CA, then more power to you. You'll be renting for a very long time. A loan of above 80% LTV is not necessarily a sucker loan. If you plan to live in the house for a long time OR if it appreciates nicely OR if you can pay down the 2nd trust quickly, you'll be ahead of the game and you'll be a homeowner. Even a 100% loan is not a sucker loan, unless you make the minimum payment and/or accrue negativity equity. You have to live somewhere. Might as well take that tax write-off and knock down your principle if you can't stand debt.