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The Never Ending Story – Of The Mortgage

Mortgages, it seems like half the country either can’t get one or have not been able to meet the payments, the other half have been paying theirs for what seems like a lifetime without getting any closer to the end. I remember moving from our first house where we’d lived for around four years, religiously paying the mortgage every month and yet, despite all of that money going into the mortgage pot, we still owed slightly more than we’d borrowed in the first place . . . they don’t teach you that in math class at school do they?

So what are the options?

• Rent – yeah, that has to be the best option for many people, but unlike mortgages which allegedly do have a glimmer of light at the end of the proverbial tunnel, renting really is forever. That doesn’t mean that renting isn’t the best alternative for millions of Americans right now.
• Go “back to nature” – come on, America is a big place and I’m sure that if you’re not too worried about little luxuries like electricity, plumbing, stores, people, work, schools and don’t mind becoming a potential bear snack, then you could move out into the great outdoors where the air is still free.
• Squat – there are lots of empty houses just waiting for you to move in. Just one thing, when the police arrive to move you along (which they inevitably will, sooner rather than later) then don’t mention that it was my idea . . . promise?
• Stay at home – this is becoming surprisingly common these days, there are an increasing number of  live at home twenty somethings, thirty somethings and even forty somethings who have given up on ever becoming home owners and instead are still taking advantage of the little things in life like someone to make breakfast and wash their clothes whilst disposing of their disposable income on flashy cars and vacations. Not sure what the parents think of it, I mean, it’s probably nice for a while, but forty somethings? People used to think it a little odd for a forty something to still be living with their parents, but these days it’s increasingly seen as the smart option and kids are returning home to Momma in droves.

Of course, if you are one of the lucky ones who are managing to pay their mortgage (even if you don’t feel very lucky at the moment) then there are definite ways in which you can pay your mortgage off earlier without too much of a struggle, in fact, after a couple of months you probably won’t even notice it. 

My dear old Dad (don’t tell him I called him that) had the right idea (and don’t ever tell him that I thought he was right either . . . about anything, that would undo a lifetime of my work). Anyway, when he bought his last house the mortgage rates were through the roof, but he managed the payments okay so that was fine. As soon as the mortgage rates started to drop, unlike the rest of the world who enjoyed their new found extra bit of “cash in pocket” and began to live a little, he continued to pay his mortgage at the same rate. “If I could afford it then I can afford it now, the sooner it’s paid the better” – I wonder how much better off I’d be if I’d inherited those particular genes, instead of just the family nose and the dodgy ankles. If I could turn back time . . . .

Over to you Clark . . .