No. of Recommendations: 7
I hate interest payments
On the other hand, consider my parents. They bought a 3 bedroom house in New Jersey for $10,000 in 1950 at a 4% fixed interest rate over 20 years.
By the time they were finished paying it off in 1970, my father’s salary had more than doubled, inflation had made his house worth more than double, the dollars he was paying back with were cheaper, but rents continued to grow throughout the period.
In other words, he came out ahead … way ahead, as did many during that period. (You want to see the real winners, look at those who took a fixed mortgage in 1970-73 before OPEC and Vietnam inflation skyrocketed. They were paying 4% interest in a 13% environment. The banks got killed, that lucky segment made a killing.)
Interest can be good, maybe not this time, not it’s not always bad, either.
