Quote:
Originally Posted by lilac_jive
With the stock market, I'm viewing in long term (decades). Lets not talk about this year...
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Ok, but you still get a return each year right? So, if you loose 24% this year (market went from 13k to 8k) then you have to regain that loss. But, if you put that same say 5k into your mortgage that is now equity in your house... the value of your house is going to grow, probably very similarly to the market... probably better in many cases.
Also, you said you won't be in your house long. But, if you are paying principal down faster, you are paying less interest and you have more equity. So, when you do sell you will need a smaller loan for the next house, or perhaps you can move up to a bigger house with similar payments.
But, we each have our own strategies. I think we agree to disagree on this.. but we certainly seem to agree that short term unsecured debt is REALLY bad.
BOb
EDIT: Alot of people don't realize, if a stock goes down 50% then it has to double to get back to the original value. Not many stocks double as quickly as they loose half their value.