Why do they want to pay the bank thousands of dollars in interest? I just don't get it. Why not save up the cash and buy whatever it is? By the time you get your house or car paid off you may have paid twice the original price because of interest.
2006-09-15 17:37:56 · 6 answers · asked by Anonymous in Business & Finance ➔ Credit
Everyone says rent is money flushed down the toilet. Same thing is true for interest given to the bank.
2006-09-15 17:53:38 · update #1
Instead of giving the bank all that interest, just take the payments you would have given to the bank and keep it for yourself. By the time you need a new house or car or whatever, you can pay for it and avoid all the interest.
2006-09-15 18:04:56 · update #2
shiraz, i'll show you exactly where the loss is 192,000-64,000=128,000 in free cash given to the bank as interest.
the value of the home after 15 years is the same whether you boroowed from the bank or payed for it yourself
2006-09-16 18:24:28 · update #3
pea cole,
no, i certainly don't have a lot of cash, that's why i can't afford to pay double or triple the price.
2006-09-16 18:29:12 · update #4
Gimme $50 and I'll tell ya.....
2006-09-15 17:44:59 · answer #1 · answered by ♥ Haylow ♥ 5 · 0⤊ 0⤋
All the time you would be trying to save enough to buy a house you would be paying rent as well. Rent is just money flushed down the toilet. When you but a house even with the mortgage increasing property values often offset the interest on the money plus, plus, plus. My parents bought their house for $64,000 15 yrs ago just sold it for $400,000. Credit can be a useful tool if used correctly, ask an accountant.
You have no clue what you are talking about. You completely ignored my point on rising property values. Using my figures even if the interest = 3x the purchasing price of a home:
3 x 64,000 = 192,000
value of home after 15 years = 400,000
Show me where the loss is.
2006-09-16 00:49:23 · answer #2 · answered by LAUGHING MAGPIE 6 · 1⤊ 0⤋
WOW!!!! YOU MUST HAVE ALOT OF CASH!!!!
I don't, and the major population doesn't either, which is why we put our life on the line for a major loan with the banks....i wouldn't have a car, a home, and numerous other items if i didn't have a loan....(not to mention kids)
The way i look at it is...sure i'll owe the bank, but i'm getting what i want 'now'....and if it's worth it to me, then i will pay the interest...simple.
Maybe yu could spare me some change one day? You might find me at the east,south corner.(hopefully not)
You'll be fine...as long as you have a steady job and can prove to the bank that you can repay on a monthly basis, then they are more than likely to help you with the 'finer things in life'...that are important to you.
It's not as bad as it all sounds, and if you can promise yourself and the bank that you can make the payments, then it's got to be worth it all....
Best of luck...
2006-09-16 00:56:48 · answer #3 · answered by pea.cole 2 · 1⤊ 0⤋
There is a lot of reasons why people borrow $$. one of the mayor reason is because they fall behind on bills and some have the only choice to borrow to repay....and if u save up to buy a house like u said, is not a good idea because by the time u have all the money to buy it u will be old or who know what would happen to u.......the fasted way of paying off on a house, is by buying one and wait for its value to go up and then sell it...and depending on the house you could get a lot of money, enough to probably buy you a house cash............if not enough keep doing the same thing until you get it...................
2006-09-16 00:58:37 · answer #4 · answered by RICHARD M 1 · 0⤊ 0⤋
To buy something right now instead of waiting until later. This makes sense with a major purchase.
2006-09-16 01:30:08 · answer #5 · answered by Mystique 2 · 0⤊ 0⤋
Because most people need cash now...no time to save.
2006-09-16 02:43:41 · answer #6 · answered by moonshadow79 2 · 0⤊ 0⤋