The Winning Touchdown!
Imagine a football field which is 100 yards from goal line to goal line and you are somewhere on that field in terms on how much of your mortgage you have paid off. 15 years would be mid-field.
We’re obviously not out of the woods yet in terms of the housing crisis, we’ve seen some positive signs, we don’t know if they will stay positive. Here are perspectives that are not coming from CAR, NAR, Trulia, or Zillow, ideas in this blog today are coming from finance guru Jane Bryant Quinn. Let’s see what is similar or different.
Jane Bryant Quinn says: “If you’re paying on a house that’s worth less than the original price, keep paying it. It might be a slow recovery. But remember that with each payment you’re gaining more equity. You might be gaining very short yardage each month, but you are moving toward a first down with payment.”
A short sale, foreclosure or bankruptcy will devastate your credit score. Bankruptcies take a decade to go away, so instead of following the crowd, be one of the players on the field that is advancing and moving toward the goal of owning the property free and clear and financial security.
Way too many people thought of their San Diego real estate as a jackpot in Vegas and Quinn cautions against thinking of it as an investment (amen, sistah!). It is not a stock, you live in your house, you maintain it, keep it clean, and someday it will be worth more, yes. In the meantime, it fulfilled one of the basic needs to live.
Every football field has a measure of success, this one is of making the touchdown and claiming that home as yours with no payments. After you get to the 50th yard line, it’s easier to see your goal ahead, so keep pushing forward.
Want to advance from the 50 yard line to make a touchdown faster? Stay tuned for our next post.
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Jane Bryant Quinn can always be relied on for good financial advice.
There was an article recently in the UT about the advantages of renting vs. homeownership in certain urban markets. I felt the view of renting was short sighted. At the end of X amount of years the return is 0. Whereas the return on the initial investment of a house plus the fulfillment of owning one’s own home far outweigh renting long term.
See the next post:)