We’re in debt again. Yay!

Before closing on our house today, we had zero debt.  No credit card debt, no student loans, no car payments, no mortgage.  It felt good.

Now we have a mortgage.

But we also have a house.

This feels better.

5 responses to “We’re in debt again. Yay!

  1. Congratulations!!!!!!!!!!!!!!

  2. It is a necessary evil, right?!

  3. 30 year mortgage?

    You know, of course, that every dollar on principal you pay this year is worth about $20 over the life of the mortgage, yes?

    So, if you have an extra $100, and you put it into your mortgage principal, it’ll be the same as banking about $2,000 (I’ve not run the figures today, or even in the last few months, but we’re in the ballpark).

    If you put $1,000 or $2,000 extra into principal this year, you may knock a year or so off the mortgage.

    Get your investment advisor to run the numbers for you. If you can, it’s a good way to invest. For some people, it may be the best way to invest.


  4. Ed,

    You are SOOOO preaching to the choir here. We’ve owned two other houses already, for about three years each. We’d been able to knock nearly a year off of each of those 30 year mortgages in the three years we owned each house. I’m a big fan of throwing extra cash at the principal balance. Especially now, when so much of each payment is interest (and despite that this is the period of homeownership when I can afford it least).

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