- I have zero debt. Am I weird? over at Squawkfox. This Canadian woman has zero debt, six-figure savings, and still has nice things. How did she do it? Read the post to find out.
- Don’t use your house to pay for your life at Rocket Finance. “Rocketc” relates the story of how he bought a home and then refinanced the mortgage four times in six years. Oh, and he got two HELOC’s during that time too. It’s a cautionary tale with a good list of lessons at the end of it. Definitely worth reading before buying a house and before refinancing a mortgage.
This second post struck a chord with me for a few reasons.
1. When my wife and I bought our first condo, we took out a second mortgage to fund a vending business, which ultimately failed. We lost $30,000 after we discovered how quickly vending machines depreciate in value. Fortunately, we were able to sell the condo for a price that covered both mortgages. We “only” had to bring $1,500 to the closing table to get out. (It could have been much worse.)
2. In the Denver area, I’ve seen all kinds of shenanigans in the housing market. I remember when my wife and I were still looking for a home. One neighborhood was particularly attractive to us because the homes were new and the location was good. I remember the sales person pressuring us to buy saying, “If you don’t sign the contract now, the prices will be going up by $15,000 in two weeks or less. Lately, they’ve been going up $10,000 to $15,000 every three weeks. If you wait, you may have to pay a lot more.”
Of course, the price increases were completely absurd, built on nothing but mass hysteria. I resented the high-pressure sales tactics and we left. We never bought a home there.
Anyway, definitely read Rocketc’s post if you’re in the home buying market.
Enjoy! And look for more posts about debt reduction soon.