This is a very interesting post, as well as a lot of great comments…
Chris, I completely agree with you.
And you take a second hit when you look at your mortgage statement to see exactly where your monthly payments are going. The way mortgages are structured, you pay much more interest in the first few years you own a house. Usually, it isn’t until you’re about five years into paying down your mortgage that you’ve made enough progress on the principal to make it a better deal than paying rent each month.
A little bit of math works here.
David’s Note: When you take out a mortgage, you are paying an interest rate on what you owe. So, in the first year, when the principal is highest, the interest you need to pay is also the highest. However, since the monthly payment is the same throughout the term of the loan (at least with a fixed rate mortgage), more of the payment will be used to cover the interest payments, meaning less is going towards the principal. As your principal goes down, your interest payments will go down, leaving more of your check to go towards the principal.
There is no such thing as a justly earned free-ride in this world.
Nick my husband and I are similar to you. My husband make near 200k and so do most of the people we know. There is a common stream in all their personalities. They are work-a-holics. They all have higher education, and continue their education. They never turned down work that was beneath them in young age. It it pretty funny to hear what some of them did as teens. There is not a single one that I know that had rich or even middle class parents. In fact most of their parents were dirt poor. I myself paid for college with my own money, earned from two sometimes three jobs, scholarships, online classes, going to school on and off as I could afford it. People are so quick to say it can’t be done because they don’t want to put in the effort. It is amazing how when you are finally, finally making a little money everyone wants their hand in your pocket.