Depends what era of hip-hop you’re talking about. I haven’t listened to any new hip-hop since the early 2000’s - I hear there’s a thing called mumble rap now-a-days that I want absolutely zero part in. If I die without allowing any of that, what seems like, garbage from leaking into my ears, I’ll consider my life a success…
“It’s entirely situational and it depends on your comfort with having less liquidity,” says Jason Bateman, head of Redfin Mortgage. “If putting more money down hurts your ability to adapt to unseen expenses, it can put you in a jam.”
I dropped a bomb on our car payment which eliminated it. My wife got nervous about it and thought I was just being my usual numerically neurotic self.
6 mos. later I’m like “Hey hon, check out that bank account!..”
Her: puzzled “Why, what’s wrong?”.
Me " Nothing! Just look.".
Her “Oh!.. So where are we going on vacation?”.
They’re not entirely wrong. I spent time doing both foreclosed home inspections and working at a mortgage company. Personal liquidity is THE driving force behind the snowball effect of crippling debt that millions are in.
Also when they talk about competing debt it’s not a small portion of the population. The vast majority of people buying homes these days have another source of debt (whether it be car, student loans, a credit card, etcetc). Statistically it’s very unlikely that any of those sources of debt will have a longer term OR a higher interest rate.
I didn’t put 20% down on my house when I bought it. Given how low interest rates are/were it just doesn’t make sense financially if you have other sources of debt.
Yeah. I put less than 20% down on my 3.25% rate home in 2013. But I did the math and realized that without extra principle-only payments I’d be paying many tens of thousands of dollars in extra interest over 30 years.
Normally I’d say 20% only really makes sense in situations with no competing debt. Otherwise you have the outpacing ability of paying off higher % debt and snowballing the savings into your lower % debt
I only have a mortgage for debt and didn’t put anything down on my last house. I lived there for 2 years, six days and walked away with 40% of my principle. On my current house, I put 7.5% down. I’m not going to own this house for more than 2-5 years. No sense burying my liquidity in a home I’m not going to live in long.
My money is making me more money than the cost of the added interest.
I think paying off all short term, non-asset backed debt is first priority, then short term asset-backed. Then, maybe, pay off the home.