Quote:
Originally Posted by J1ceasar
There's another interesting legal issue to consider about the mortgage and the house. That is if you get sued having a bond and a high mortgage means it is less money for people or businesses to attach. Just a thought. And as I'm sure someone has pointed out in the comments it's always better to have cash in the bank than to have it in your house has it's a lot harder to get a second mortgage loan when you are in trouble, as well as the fact that if you have the money invested the stock market seems to be going a lot better then 1/10 of 1% at a bank
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Re: the stock market.
We tend to get lulled into believing the stock market only goes up and real estate only goes up. Reality is it is true except when it isn't.
As on 3/31/21 this has been the best year in 15-20 years in the stock market. The S&P is up 56.35% as a full year ending 3/31/21. We tend not to understand math. If, you invest 10,000 and it goes up 10% and down 10% the next year YOU ARE NOT EVEN.
10,000+10%=11,000 11,000-10%=9900 HUH WHERE DID MY 100 VANISH TO. Recovery
9900 needs to earn just under 2% just to get back to your original 10% to the 11,000 you had at the end of the first year it is almost 13%.