Quote:
Originally Posted by ASAP
Yesterday, on one of the FB groups, there was some guy that posted he traded in a Civic Type R that he had negative equity on it for a new M4... he would then owe 107k on a car worth 91k...
Posts like this are why I am confident in the fact this next economic crash is going to be solid...
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Meanwhile, when someone wants to understand these things in order to make better and smarter decisions only a few try to actually explain it while the rest just ridicule.
There was a time I didn't understand anything with finances and I made a lot of dumb decisions because no one explained it to me. I learned by being sick of being broke, but for so many being people broke is normal and they don't know how to get out if it, or that it's even possible.
Quote:
Originally Posted by ASAP
People's heads would really explode if they knew what a 7% interest rate on a 30 year loan for a house really means  ... do you think they know that they pay more than double for the house at that point? |
Unfortunately that 7% rate is most folks only option right now. Sure, they can keep throwing money away at a rental or a payment they can't afford in hopes that interest rates come down, but how long will that take? And will they ever come back down to a reasonable rate, or is this going to become the new normal?
I just did a small 2cnd equity mortgage at 6.2% for 15 years. It fucking sucks, but it's my best option right now. But, I will be selling in the next few years and as long as the market doesn't tank by then I'll sell for far more than I owe and should be able to walk away with around half (or more) my sale price in my pocket.
I think many of us here are comfortable, and while we know shit sucks out there right now, I feel like most are too far removed from what is actually happening for a lot of folks. Most folks today can't think about long term, because they can only budget for today. Most first time home buyers can't afford the down payment required in todays market so they get sucked into high rates with shitty fine print programs.