*Look away Dave Ramsey enthusiasts* -- Buying Bronco with cash out home refinance?

[Texas Sunshine]

I won't buy anything that I can't truly afford. Not even a Bronco. if you have to scramble to make it work, wait another year. Emotional buys are never a good choice.

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[North7]

Of course if your home costs as much as your home in California your property taxes in Texas would be higher ?

40% lower cost than my California home and it's a larger house.

 

[RLW]

Hahahahaha

to the idea of this thread.
But to each his own.
This is why banks and lenders have lots of money and most of America doesn’t.

 

[Compta38]

That Bronco gonna cost you about $100k after you pay for it 15-30 years lol.

 

[BroncoChicken]

I completely understand the desire to find the best deal for yourself. I could not under any circumstance sign off on paying off a car over the duration of a mortgage. Odds are you probably won’t still have this Bronco in 30 years, or even 15. But you’d still be paying for it. There’s also a chance that the extra balance could also increase the LTV to a point where it affects your rate. Too many red flags for me.

I’m a pay in cash advocate, but I don’t want to cash out and pay cap gains on the Bronco dollars. So I think I’ve decided to pay 25% or so up front and make payments with extra principal to get rid of the loan over 24-36 months.

 

[Bronco4lyfe85]

Rent. It's not a bad option for most who need to get away from debt.

Debt is bad but lighting your money on fire renting something with no value is better? Interesting.

 

[Bronco4lyfe85]

People figures are ridiculously off.

OP. How much is your current payment? Interest rate% What do you owe?

How much is the Bronco you want to buy?

 

[BroncoChicken]

Debt is bad but lighting your money on fire renting something with no value is better? Interesting.

Our house is cheaper than renting a 2-br apartment in our neighborhood in Denver. Rent vs buy can depend on where you live and how much you can put down, which I think is the main roadblock for a lot of folks. I do agree that debt is a bad trap for a lot of people, but mortgages can also make sense as long as you don’t over-extend yourself.

 

[Lab00Rat]

Debt is bad but lighting your money on fire renting something with no value is better? Interesting.

Then you can say the same for you phone, power, internet, water, insurance, etc. You do get something, just not debt. Read my other thoughts on this subject.

 

[Bronco4lyfe85]

Our house is cheaper than renting a 2-br apartment in our neighborhood in Denver. Rent vs buy can depend on where you live and how much you can put down, which I think is the main roadblock for a lot of folks. I do agree that debt is a bad trap for a lot of people, but mortgages can also make sense as long as you don’t over-extend yourself.

I live in Colorado and this obsession with debt in this thread is insane. Mortgages are not bad debt and if you’re financially smart they pay off in the long run as they can make you debt free later in life. They also are the only thing you’ll ever possess that continues to appreciate in value.

 

[AZHUND]

This is definitely a "YOLO" type financial move. But at the speed the loan terms are increasing, maybe a 15 year term will one day be standard. Frightening.

 

[SamR]

Then you can say the same for you phone, power, internet, water, insurance, etc. You do get something, just not debt. Read my other thoughts on this subject.

Well I installed a solar system that 100% replaces my electrical needs and I am net metered for another 19 years or so. So I don't really pay for power just a connection fee to use the grid. How can I eliminate the other monthly fees without starting my own utility company? Because I would if I could!

 

[Bronco4lyfe85]

Then you can say the same for you phone, power, internet, water, insurance, etc. You do get something, just not debt. Read my other thoughts on this subject.

If I lived in an apartment for the next 35 years (70) at $1,200 a month (Colorado) I would spend 504K and have nothing to show for it.

Or I could just pay for my house for the next 24 years with 1 extra payment a year and spend 500K with interest and be 60 with no rent or mortgage and have something that’s worth 400K+ in my back pocket.

For fun $1,200x12x24= 172,800 saved over 24 years.

60 till I die at say 80 = $0 in mortgage or rent.

60-80 renting = 144K

So I saved 28K and own nothing.

Sell house when dead so family gets 400K+ in cash for themselves.

 

[SamR]

This is definitely a "YOLO" type financial move. But at the speed the loan terms are increasing, maybe a 15 year term will one day be standard. Frightening.

What's scary is this isn't that far fetched of a prediction... I bought a new Mazda 2 in 2012 and financed most of it on a 5 year loan. That felt like forever, I can't imagine the 7+ years they have now. I don't regret financing that car at all because of where I was in life (also was 0% interest) but I will never finance a car again.

 

[BroncoChicken]

I live in Colorado and this obsession with debt in this thread is insane. Mortgages are not bad debt and if you’re financially smart they pay off in the long run as they can make you debt free later in life. They also are the only thing you’ll ever possess that continues to appreciate in value.

I agree with you. That’s why I was pointing out our mortgage is cheaper than renting in our neighborhood.

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