What's the average age that people are debt free in America?

[Vdubchaos]

Vdub, It's not often I say this, but you're an idiot.

APR is an interest

"The APR is the annual cost of a loan to a borrower -- including fees. Like an interest rate, the APR is expressed as a percentage. Unlike an interest rate, however, it includes other charges or fees (such as mortgage insurance, most Glossary Term: closing costs layer, Glossary Term: discount points layer and loan Glossary Term: origination fees layer) to reflect the total cost of the loan. The Federal Truth in Lending Act requires that every consumer loan agreement disclose the APR. Since all lenders must follow the same rules to ensure the accuracy of the APR, borrowers can use the APR as a good basis for comparing certain costs of loans. Your monthly payment is not based on APR; it's based on the interest rate on your Glossary Term: promissory note layer."

I'm trying to help you, but clearly you are too stupid to see that.

You know why housing crash happened? Cause our Government and Banks already know that most people are just like you. They have all the info int he world right in front of them but are too dumb to understand the BASICS.

Most people (and this includes you) cannot be helped....

I say, more power to banks.

 

[Vdubchaos]

I had quoted another poster who originally posted the rule of thumb (house no more than 3x annual household income.) My post was sort of a joke about it, since it's the other way around for me. Regarding the 3x rule though, it depends a lot on where you live (taxes), It's not unheard of in this area for your monthly tax burden on your house to be equal to your mortgage payment.

It is a rule of thumb today.

It used to be an REGULATION that would prevent you from EVER getting a loan.

:biggrin:

Just like 20% down payment....before all of that was deregulated and banks were running wild.

 

[artvscommerce]

"The APR is the annual cost of a loan to a borrower -- including fees. Like an interest rate, the APR is expressed as a percentage. Unlike an interest rate, however, it includes other charges or fees (such as mortgage insurance, most Glossary Term: closing costs layer, Glossary Term: discount points layer and loan Glossary Term: origination fees layer) to reflect the total cost of the loan. The Federal Truth in Lending Act requires that every consumer loan agreement disclose the APR. Since all lenders must follow the same rules to ensure the accuracy of the APR, borrowers can use the APR as a good basis for comparing certain costs of loans. Your monthly payment is not based on APR; it's based on the interest rate on your Glossary Term: promissory note layer."

I'm trying to help you, but clearly you are too stupid to see that.

You know why housing crash happened? Cause our Government and Banks already know that most people are just like you. They have all the info int he world right in front of them but are too dumb to understand the BASICS.

Most people (and this includes you) cannot be helped....

I say, more power to banks.

None of this is relevant to the point that sparked this debate and it looks like an attempt at backpedaling or redirecting the conversation. The guy who mentioned APR was simply concerned that loan costs might go up between now and next year. APR, interest rate, whatever; None of your comments have anything at all to do with his point. So again, what are you talking about?

 

[TheSlamma]

It is a rule of thumb today.

It used to be an REGULATION that would prevent you from EVER getting a loan.

:biggrin:

Just like 20% down payment....before all of that was deregulated and banks were running wild.

Looks to me like it's even more wild now than it was in 2008 also. "Jumbo's" seem to be free handouts now to anyone that wants them. My neighbors just sold their place and bought a $900,000 place with one. Only 1 income household too. He loses that job they will be running to her parents house.

 

[purbeast0]

You would have to be retarded to think that.... As someone else said, a $33k home for a $100k income? You best be trollin'.

You would need $300k (Top 2-3%?) in order to afford a $100k home (shit home, especially depending on the location). Doesn't make sense.


edit: The ACTUAL general notion has been to not spend more than 30% of your income on housing/rent payment. Some people aren't able to handle percentages and monthly income.

that is exactly what he said, so yes, i did think that, which i thought was absurd. but in bumfuck nowhere, which a lot of you all on this forum live, you can find housing for $50k and a combined salary of $150k is chump change.

 

[jlee]

that is exactly what he said, so yes, i did think that, which i thought was absurd. but in bumfuck nowhere, which a lot of you all on this forum live, you can find housing for $50k and a combined salary of $150k is chump change.

What sorta places are offering $75-100k salaries with $50k houses?

 

[highland145]

What sorta places are offering $75-100k salaries with $50k houses?

You can find that here with Plant Vogtle, SRS or a skilled trade but the $50K houses aren't where many would choose to buy.

 

[TwiceOver]

You can find that here with Plant Vogtle, SRS or a skilled trade but the $50K houses aren't where many would choose to buy.

Yeah you can find $50k houses here AND have a salary in that range, but there's no reason to buy that low around here. $50k house around here is going to get you something around 100 years old, plaster everywhere, questionable basement. For $100-120k you can easily get a 4 bed ~25 years old 2500sqft.

 

[zephyrprime]

You can find that here with Plant Vogtle, SRS or a skilled trade but the $50K houses aren't where many would choose to buy.

PurBeast is greatly underestimating the cost of housing even in the middle of nowhere. Even if land costs were $0, it would cost more than $50K to build a decent small family home. The only reason you see a house for $50K is because it is in the hood, not because the building and land cost of the house is actually that low.

 

[SketchMaster]

I've been able to get myself debt free many times, but got right back into it because I was an asshat that wanted to live outside my means. I used to be a field rep, got paid way too much to fly around and do tech work. I spent every paycheck on elaborate meals, top shelve booze, trendy clothes, but didn't save a penny outside what I put in my 401k.

At age 28 I looked at all my friends who owned houses and never stressed about money, and I realized I had a problem. At 29 I pulled my head out of my ass, got some advice from friends, and stopped buying crap I didn't need. I'm now debt free, with a decent amount in retirement savings, but need to work on saving up liquid funds for emergency and down payment on a house.

However, I'm no longer stupid with money: https://www.youtube.com/watch?v=013rp5Z-5x0

 

[zephyrprime]

Never heard of that rule, but I guess it checks out.

$300k house on $100k income.

Maybe a little steep... 2.5:1 sounds like better advice.

There is an actually government guideline concerning this but it's a little different. The goverment uses it for determining eligibility for grants or refinancing or etc. The rule is nor more than 30% of your income should go towards housing costs (mortgage, rent, insurance, taxes). The rule isn't that you should buy a house 3x times your income.

 

[mrjminer]

Ahhh... government guideline

 

[highland145]

PurBeast is greatly underestimating the cost of housing even in the middle of nowhere. Even if land costs were $0, it would cost more than $50K to build a decent small family home. The only reason you see a house for $50K is because it is in the hood, not because the building and land cost of the house is actually that low.

The neighborhood that I grew up in, middle/lower middle class, is like that. 1000sqft houses, now 80% section 8 rentals. They're going for $60K, renovated. Building new would be 100/ft...$100K. My Dad paid ~$11K for ours, 1962.

My bro still lives there. "It's paid for." He makes bank as a plumber. We're Scots/Irish/German/Mutt but I'm sure there is a "stein" at the end of some ancestor's name.

 

[DrPizza]

PurBeast is greatly underestimating the cost of housing even in the middle of nowhere. Even if land costs were $0, it would cost more than $50K to build a decent small family home. The only reason you see a house for $50K is because it is in the hood, not because the building and land cost of the house is actually that low.

Keep telling yourself that if it makes you feel better, but you're wrong.

 

[highland145]

Keep telling yourself that if it makes you feel better, but you're wrong.

Most don't have the skills (or a clue) to build their own. Otherwise, I agree with you.

 

[JSt0rm]

In LA your MINIMUM purchase is like 300k (unless you want the super hood). Thats like a 1000sq ft condo 2 bedroom or 3 small ones.

 

[Sho'Nuff]

At 38, I "could" be debt free right now. I have roughly 4x more assets than debts and could pay everything off by selling investments. The only debt I carry is a mortgage and a single car payment, and the only reason I keep those is because the rate on each of those loans is so low (3.6% for the house, 1.9 for the car). I can do better than that putting money in the market, so I invest rather than pay those loans down any faster than I have to.

The past two years have been a bit odd for me, as I am typically very frugal and save/invest 25% of my income in non-qualified investments. But the last two years we decided to perform major renovations on our house, so apart from retirement and the kids 529 plans we have not added any new principal to the non-qualified investment pool for the last two years. Got a really good early start though, so I'm not worried and things are looking good for "retirement" at age 55-59.

As for houses, my mother lives in 1300 sq foot 1950's era ranch in Alexandria Virginia. Its assessed value is $420k. Which, oddly, is the same amount my wife and I paid for a pretty nice 3300 square foot single family home in NH.

 

[Paratus]

At 38, I "could" be debt free right now. I have roughly 4x more assets than debts and could pay everything off by selling investments. The only debt I carry is a mortgage and a single car payment, and the only reason I keep those is because the rate on each of those loans is so low (3.6% for the house, 1.9 for the car). I can do better than that putting money in the market, so I invest rather than pay those loans down any faster than I have to.

The past two years have been a bit odd for me, as I am typically very frugal and save/invest 25% of my income in non-qualified investments. But the last two years we decided to perform major renovations on our house, so apart from retirement and the kids 529 plans we have not added any new principal to the non-qualified investment pool for the last two years. Got a really good early start though, so I'm not worried and things are looking good for "retirement" at age 55-59.

As for houses, my mother lives in 1300 sq foot 1950's era ranch in Alexandria Virginia. Its assessed value is $420k. Which, oddly, is the same amount my wife and I paid for a pretty nice 3300 square foot single family home in NH.

Similar deal here. We're two years older have multiples of assets over debts, (House, one vehicle both at very low percentages. 2.85 on the house -10year)

Problem is three kids to put through college. Our cost of living is better here though. 3600ft^2 is going for $300,000 around here. Of course it is Texas.

 

[John Connor]

So long as you are paying taxes you are never, "debt free."

 

[DaWhim]

what's wrong with being in debts? there are good debts and there are bad debts. if you can get 0% on a loan, it make no sense not to take it to be happily in debt.

I have money money to pay off my debts but refuse to (student loans only at 3.5% or so)

 

[TheVrolok]

I couldn't get more than a few pages in reading Vdub's nonsensical drivel. Not much of a surprise there. As others have said, though, I would imagine the vast majority of Americans are rarely ever debt free these days.

 

[Scarpozzi]

In LA your MINIMUM purchase is like 300k (unless you want the super hood). Thats like a 1000sq ft condo 2 bedroom or 3 small ones.

Yeah...but you're more than likely an Actor/Actress. (aka barista/busboy/waitor/waitress)