What's the average age that people are debt free in America?

[Blanky]

...

 

[s0me0nesmind1]

i think you have it backwards. he said his household income is 3x the price of his house.

ie, $100k house on $300k income.

never heard of this rule either, but not a chance in hell it is even remotely plausible where i live (and many parts of the country)

EDIT:

unless he meant mortgage is 1/3 the monthly income.

You would have to be retarded to think that.... As someone else said, a $33k home for a $100k income? You best be trollin'.

You would need $300k (Top 2-3%?) in order to afford a $100k home (shit home, especially depending on the location). Doesn't make sense.


edit: The ACTUAL general notion has been to not spend more than 30% of your income on housing/rent payment. Some people aren't able to handle percentages and monthly income.

 

[s0me0nesmind1]

My wife could care less about upgrades, 'tis why I love her .
Definitely having reasonable expectations matter. My previous home was in a "middle" middle class neighborhood and I resisted installing granite counter tops because I knew I would sell down the road. All I did was install laminate flooring, some paint touch ups and de-clutter. Sold the house in 1 day.

Yup. Sounds about right.

We're probably the same category as "Middle" middle class housing. I just simply don't like the cookie cutter neighborhood with retarded neighbors. Nor would I send my kid to the schools here.

We're pretty much in the same boat. I gave a thumbs-up for hardwood floors. At least we can put it to decent use in the meantime, and the shit builder carpet had to go. Now we can at least advertise the home as hardwood. Whereas laminate you aren't able to.

I'm anxiously awaiting the new house... but it's simply not the right time... Need to rack up some more money for a big down payment. My only fear is how much the loan APR will go up between now and then.

 

[Vdubchaos]

Yup. Sounds about right.

We're probably the same category as "Middle" middle class housing. I just simply don't like the cookie cutter neighborhood with retarded neighbors. Nor would I send my kid to the schools here.

We're pretty much in the same boat. I gave a thumbs-up for hardwood floors. At least we can put it to decent use in the meantime, and the shit builder carpet had to go. Now we can at least advertise the home as hardwood. Whereas laminate you aren't able to.

I'm anxiously awaiting the new house... but it's simply not the right time... Need to rack up some more money for a big down payment. My only fear is how much the loan APR will go up between now and then.

You mean interest, not APR.

And that should not sway your "ready to buy" decision anyways.

You are ready when you are ready, regardless of Interest rates. When they go down you will refinance.......

 

[edro]

You mean interest, not APR.

No, he means APR.

 

[Vdubchaos]

No, he means APR.

APR difference only goes up when you are dealing with shady lenders.



Before you get into this discussion, do little research and learn exactly what APR means.

 

[IronWing]

APR only goes up when you are dealing with shady lenders.



Before you get into this discussion, do little research and learn exactly what APR means.

You're like a troll bot today. You're approaching ThreeDings level of trollery. Nothing wrong with that except this ain't a troll thread.

 

[Vdubchaos]

You're like a troll bot today. You're approaching ThreeDings level of trollery. Nothing wrong with that except this ain't a troll thread.

Here we go with Mr. Peanut gallery

It all makes sense now, ignorance and stupidity is clearly widespread around these ways.



Credit card APR and Mortgage APR are NOT the same.

https://www.bankofamerica.com/home-loans/mortgage/finding-the-right-loan/apr-vs-interest-rate.go

 

[s0me0nesmind1]

You mean interest, not APR.

And that should not sway your "ready to buy" decision anyways.

You are ready when you are ready, regardless of Interest rates. When they go down you will refinance.......

You really don't belong in this thread dude.

Tinfoil Hats are that way ------->


And no, interest rates should play a BIG impact on if you should be willing to move or not. If you're in a home with 2.75% Interest, and when you move interest rates have skyrocketed to 5-6% That should VERY WELL play a part in asking whether or not you can afford the home or not.

Anyone that doesn't make interest rates a factor is just as ignorant as people that don't worry about how much of their income goes to their house payment.

 

[artvscommerce]

APR only goes up when you are dealing with shady lenders.



Before you get into this discussion, do little research and learn exactly what APR means.

What are you talking about?? This is even crazier than the other post I quoted from you earlier.

Shady lenders? Interest rates go up and down all of the time, for ALL lenders. It's reasonable to expect that a year from now interest rates will either be higher or lower than they are now. How are shady lenders even remotely related to what he was talking about?

 

[artvscommerce]

You really don't belong in this thread dude.

Tinfoil Hats are that way ------->

I think you're right. I don't think this guy is interested in our help. We're talking about someone who claims that the worst type of loan is the type that typically carries the lowest interest rate (mortgages). I hope someone close to him sets him straight on some of these topics; Its going to be very hard to survive after retirement if you don't understand how investing works.

 

[Vdubchaos]

You really don't belong in this thread dude.

Tinfoil Hats are that way ------->


And no, interest rates should play a BIG impact on if you should be willing to move or not. If you're in a home with 2.75% Interest, and when you move interest rates have skyrocketed to 5-6% That should VERY WELL play a part in asking whether or not you can afford the home or not.

Anyone that doesn't make interest rates a factor is just as ignorant as people that don't worry about how much of their income goes to their house payment.

I'm a troll and tell me to leave YET you start using proper words I corrected you on.

You said APR

Yup. Sounds about right.

We're probably the same category as "Middle" middle class housing. I just simply don't like the cookie cutter neighborhood with retarded neighbors. Nor would I send my kid to the schools here.

We're pretty much in the same boat. I gave a thumbs-up for hardwood floors. At least we can put it to decent use in the meantime, and the shit builder carpet had to go. Now we can at least advertise the home as hardwood. Whereas laminate you aren't able to.

I'm anxiously awaiting the new house... but it's simply not the right time... Need to rack up some more money for a big down payment. My only fear is how much the loan APR will go up between now and then.

Interest is NOT APR (although closely related) when it comes to mortgage loans.

I'm trying to educate you on stuff that you should already know about....as a home owner and all.

Who is the troll?

 

[rh71]

is a 30-year mortgage the norm? If so, then I'd vote age 60 or so. We just refinanced from a 30 to a 15-year after paying off 5 years and hopefully we'll be done in 12 saving us 13 years of payments and $25k interest. We'll still have disposable income, and having no mortgage before 50 sounds great to us. Too bad it's at the same age both kids start college so that's more debt incoming. Hopefully we'll have enough savings by then instead. State college please!

 

[Vdubchaos]

What are you talking about?? This is even crazier than the other post I quoted from you earlier.

Shady lenders? Interest rates go up and down all of the time, for ALL lenders. It's reasonable to expect that a year from now interest rates will either be higher or lower than they are now. How are shady lenders even remotely related to what he was talking about?

He said APR, not interest. I corrected him because there is a BIG difference between the 2 when it comes to Mortgage.

What's crazy is that we have bunch of F'in experts around here that don't even know the basics of Mortgage loans.....

I know it's easy to jump on the "stupid band wagon" around here, before you do so, think a little and know WTF you are talking about.

 

[kaerflog]

I agree with someone here. Dave Ramsey is for the financially retarded.
Knowing how to use CC is the best way to get free money.
I mean I've saved up tons of flight milage from CC sign up bonuses.
I haven't had to pay for a hotel in 8 yrs.
Plus tons of bonus money and I haven't paid a cent in interest since I became CC debt free for 15+ yrs.
All I did was created an expense chart and got me to spend wisely.

I became totally debt free back in 2000, about 4 yrs after college and haven't looked back.
Got married about 3 yrs ago and my wife had zero credit at the time.
I helped her slowly build up her credit and now she's at 750+.
Now, i'm getting her to sign up for all the CC signup bonuses like I did through the years.
I don't even make that much, $50k-$70k the past few yrs but having no Florida income tax helps.

 

[jlee]

He said APR, not interest. I corrected him because there is a BIG difference between the 2 when it comes to Mortgage.

What's crazy is that we have bunch of F'in experts around here that don't even know the basics of Mortgage loans.....

I know it's easy to jump on the "stupid band wagon" around here, before you do so, think a little and know WTF you are talking about.

No, there's not. One is directly related to the other.

http://www.consumerfinance.gov/askc...ween-a-mortgage-interest-rate-and-an-apr.html
An annual percentage rate (APR) is a broader measure of the cost to you of borrowing money. The APR reflects not only the interest rate but also the points, mortgage broker fees, and other charges that you have to pay to get the loan. For that reason, your APR is usually higher than your interest rate.

APR is the "total cost," if you will.

 

[jlee]

I agree with someone here. Dave Ramsey is for the financially retarded.
Knowing how to use CC is the best way to get free money.
I mean I've saved up tons of flight milage from CC sign up bonuses.
I haven't had to pay for a hotel in 8 yrs.
Plus tons of bonus money and I haven't paid a cent in interest since I became CC debt free for 15+ yrs.
All I did was created an expense chart and got me to spend wisely.

I became totally debt free back in 2000, about 4 yrs after college and haven't looked back.
Got married about 3 yrs ago and my wife had zero credit at the time.
I helped her slowly build up her credit and now she's at 750+.
Now, i'm getting her to sign up for all the CC signup bonuses like I did through the years.
I don't even make that much, $50k-$70k the past few yrs but having no Florida income tax helps.

You mean the $700+ in Chase travel credit I have right now (for free) was a good idea?

Who knew!?

:hmm:

 

[Vdubchaos]

No, there's not. One is directly related to the other.

http://www.consumerfinance.gov/askc...ween-a-mortgage-interest-rate-and-an-apr.html
An annual percentage rate (APR) is a broader measure of the cost to you of borrowing money. The APR reflects not only the interest rate but also the points, mortgage broker fees, and other charges that you have to pay to get the loan. For that reason, your APR is usually higher than your interest rate.

APR is the "total cost," if you will.

Yes they relate, but as a consumer you pay attention to INTEREST first and APR second.

APR is an indicator of how bad the lender will screw you on closing fees.....

You should know this.

Looking at APR and ignoring Interest = doing it wrong but certainly what lenders want you to do!

 

[NoCreativity]

Great. Now that we've all been taught the proper way to do everything mortgage by the resident troll/moron we'll now get to listen to all the ways credit cards are evil including, but not limited to raping your wife and daughter.

 

[jlee]

Yes they relate, but as a consumer you pay attention to INTEREST first and APR second.

APR is an indicator of how bad the lender will screw you on closing fees.....

You should know this

And you should know a lot of things.

 

[TheSlamma]

I keep hearing people say they're debt free on Dave Ramsey's show... I remember hearing this one lady that was in her late 20s call in bragging about how she had her house paid off and had about $20k in liquid assets...and pays cash for everything. I think it's absurd unless they are making $200k a year and living a moderate lifestyle.

They talk like they made this happen, but my guess is 99/100 times they are just Trust babies. Nothing special at all.

 

[jlee]

They talk like they made this happen, but my guess is 99/100 times they are just Trust babies. Nothing special at all.

Eh, I'm sure there's some truth to it. A lot of people spend a lot of money they don't need to.

 

[s0me0nesmind1]

Yes they relate, but as a consumer you pay attention to INTEREST first and APR second.

APR is an indicator of how bad the lender will screw you on closing fees.....

You should know this.

Looking at APR and ignoring Interest = doing it wrong but certainly what lenders want you to do!

Vdub, It's not often I say this, but you're an idiot.

Interest is a broad-term. You paid interest on your loan. You paid interest on your credit. You owe interest to Billy because he gave you a candy bar when you didn't have money.

APR is an interest, moreover, a calculation of interest. To put it simply, there was absolutely nothing wrong with my statement.

 

[s0me0nesmind1]

Eh, I'm sure there's some truth to it. A lot of people spend a lot of money they don't need to.

Do they discover their problem BEFORE or AFTER they fill their garage to the brim and have to start parking their cars on the driveway?

It's funny, people in the middle class always claiming to be suffering are some of the ones most prone to this. I catch them with their garage open occasionally and feel like there is going to be a camera crew later for Hoarders.

 

[DrPizza]

oh i gotcha, he said it backwards then in his example if that is what he means.

yeah i'm well below that line (house is like 2x our income, closer to 2.5 now that my wife is not working while our newborn grows a bit).

and i only put 5% down on my house, so apparently i can't afford it, even though i pay an extra $250 into the principle every month

I had quoted another poster who originally posted the rule of thumb (house no more than 3x annual household income.) My post was sort of a joke about it, since it's the other way around for me. Regarding the 3x rule though, it depends a lot on where you live (taxes), It's not unheard of in this area for your monthly tax burden on your house to be equal to your mortgage payment.