How much debt you have? Mortgage and student loans included.

[Anonymous]

Anonymous wrote:$575k on a house in Fairfax County at 2.8%. Worth $900k-$950k, and will be paid off in 15 years.

$350k on our vacation home at 4.25%.

$50k in car loans. One will be paid off in three years, the other in two. We keep our cars awhile, so no plans to increase this.

No student loans. DH and I both paid them off years ago.

We're 38 and 40 with an HHI of $415k, so $975k in debt doesn't seem unmanageable or unreasonable.

We know a similarly aged couple with an HHI of $350ish and $2.2 million in debt. I couldn't fathom that.

$50,000 in car loans sounds excessive. Why didn’t you buy cars you could afford. That’s a large debt that is completely unnecessary.

[Anonymous]

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Anonymous wrote:800k mortgage on a 1.4 house. Nothing else.

Nothing else, says the person almost a million dollars in debt!

they didn't say anything about their total net worth, even setting aside the equity in the house which more than covers their debt. You do understand how 800k in unsecured debt (credit cards, student loans) is very different than a loan on an asset where they still have more than 40% equity?

I've got a 1.2 mortgage on a 2.2M house at a 2.5% rate, no other debt. Plenty of assets elsewhere. and to answer someone else's question, PITI is 7100.

This. We have $700k in mortgage debt, on a house worth about $1.3m (or something like that, it may be more, prices are going nuts these days), at 2.625% interest, and no other debt. I have no intention of paying it off before retirement, or even after I retire, at that rate. I suppose we could have prioritized paying it off, but that would have been supremely ill-advised, both in the abstract and as life turned out - we need the greater liquidity to pay for some costly medical treatments and therapies.

The anti-debt evangelicals are just so myopic.

We paid off our house and it’s freeing so we can pay for other thing like medical. The difference is living under our means. Our house is ver small and under $400k, yours is worth three times what ours is.

Not in the DC area, huh?

I don’t know where that poster lives but you can find fixer-uppers in my Silver Spring neighborhood for $400-450k.

Context is important. Just because someone can currently find a home somewhere in the DMV doesn't mean it likely that a person discussing a paid off home is from the DMV.

I wish these posters who stumbled on this board from other areas would preface their location in their response.

Yes, I am. We bought fixer upper that you’d never buy and diy most of it except roof and siding. After a few years refinanced to 15 from a 30 which kept our payment the same but we paid in a few hundred extra each month. Then we recast a few times and always paid the same amount with more going to principal. Not hard to do.

I'm in Arlington. We bought a house for $600,000 in 2003 and were able to put $150,000 down using equity from a condo we bought when we first got married (those shot up in value around here in the late 90's), we refinanced to a 15-year in 2010 when rates were down to about 3 percent--so our payment went up--and now we will be paid off in about 2 more years. People who bought in the DMV from the mid-90s to the mid-2000s benefitted from a big run-up in prices and low rates for refinancing in the 2010s and if you didn't take a lot of money out, you could be paid off or almost paid off by now in your early or mid-fifties.

You benefited. We saved and lived very modestly for years to save a down payment. The low interest rates helped but what helped more was living under our means and refinancing when there was a drop to a 15 and then recasting a few times. We paid cash for things and mostly diy.

[Anonymous]

Anonymous wrote:

Anonymous wrote:$575k on a house in Fairfax County at 2.8%. Worth $900k-$950k, and will be paid off in 15 years.

$350k on our vacation home at 4.25%.

$50k in car loans. One will be paid off in three years, the other in two. We keep our cars awhile, so no plans to increase this.

No student loans. DH and I both paid them off years ago.

We're 38 and 40 with an HHI of $415k, so $975k in debt doesn't seem unmanageable or unreasonable.

We know a similarly aged couple with an HHI of $350ish and $2.2 million in debt. I couldn't fathom that.

$50,000 in car loans sounds excessive. Why didn’t you buy cars you could afford. That’s a large debt that is completely unnecessary.

They are, apparently, affording them. The definition of afford isn’t something you can pay for fully in cash.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:$575k on a house in Fairfax County at 2.8%. Worth $900k-$950k, and will be paid off in 15 years.

$350k on our vacation home at 4.25%.

$50k in car loans. One will be paid off in three years, the other in two. We keep our cars awhile, so no plans to increase this.

No student loans. DH and I both paid them off years ago.

We're 38 and 40 with an HHI of $415k, so $975k in debt doesn't seem unmanageable or unreasonable.

We know a similarly aged couple with an HHI of $350ish and $2.2 million in debt. I couldn't fathom that.

$50,000 in car loans sounds excessive. Why didn’t you buy cars you could afford. That’s a large debt that is completely unnecessary.

They are, apparently, affording them. The definition of afford isn’t something you can pay for fully in cash.

Car loans can be had for less than the interest on savings accounts still. But even if it’s slightly higher, I’d have no problem preserving cash/invested assets to pay a spread of 1-2%

[Anonymous]

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Anonymous wrote:How do people have such low mortgage balances in the DC area? Are the people responding people who have owned their homes 20+ years?

I think this thread is getting more responses from people pleased with their lack of debt.

Like me! Zero. Paid off mortgage on $1m property by age 35, paid off $75k student loans by age 27.

I value a debt-minimal life because it allows us to be able to afford private school comfortably on a 250k HHI, as well as decent travel a few times per year. We pay cash for vehicles.

Nothing to be proud of. You poured money into an illiquid vehicle that was likely to appreciate anyway and you could take out extremely cheap debt to cover, missing out on putting all that extra free cash flow into the stock market, which has had a massively historic run up, nearly doubling. You’d have enough cash in the market now to more than pay your house note and would be sitting on - 2.5%-3% rate.

You lost millions in net worth. But at least you can brag about being debt free!

You are probably from family money.

I grew up very, very poor with a lot of insecurity in my life. I now never have to worry about money again. I literally never think about it. It automatically transfers into different accounts and savings vehicles, and I spend what I want, which is modest.

It has been incredibly freeing. I spend my time with my family and friends instead of worrying about managing investment property/funds. It’s wonderful.

You know why I came from family money? Because my parents, grandparents, and great grandparents could all build wealth by utilizing leverage.

I don’t even want that kind of wealth. I don’t want my kids to value wealth above all else. I want them to value education, friendships, and strong values. They have everything they need and some things they want. That is enough.

Very hard cope.

Hmm. But are you happy? I am. I have a strong marriage and great kids.

Money only gets you so far. I know quite a few very wealthy, VERY miserable people. I am happy with my choices.

Cope cope copeity cope, cope cope copeity cope!

[Anonymous]

Anonymous wrote:Mortgages:
- 500k on a 1.5 M house we live in
- 350k on a 750k starter house we are renting out
- 150k on a 300k apartment in Paris we are renting out.

Car:
- 30k left to pay on one car (other car paid off)

No credit card or student debts

TOtal: 1.03 M debt for 2.65M assets (counting depreciated two cars)

PP, which french bank did you use? We were planning to buy cash but it seems that you can get a loan too. Which arrondissements are you in?

[Anonymous]

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Anonymous wrote:How do people have such low mortgage balances in the DC area? Are the people responding people who have owned their homes 20+ years?

I think this thread is getting more responses from people pleased with their lack of debt.

Like me! Zero. Paid off mortgage on $1m property by age 35, paid off $75k student loans by age 27.

I value a debt-minimal life because it allows us to be able to afford private school comfortably on a 250k HHI, as well as decent travel a few times per year. We pay cash for vehicles.

Nothing to be proud of. You poured money into an illiquid vehicle that was likely to appreciate anyway and you could take out extremely cheap debt to cover, missing out on putting all that extra free cash flow into the stock market, which has had a massively historic run up, nearly doubling. You’d have enough cash in the market now to more than pay your house note and would be sitting on - 2.5%-3% rate.

You lost millions in net worth. But at least you can brag about being debt free!

You are probably from family money.

I grew up very, very poor with a lot of insecurity in my life. I now never have to worry about money again. I literally never think about it. It automatically transfers into different accounts and savings vehicles, and I spend what I want, which is modest.

It has been incredibly freeing. I spend my time with my family and friends instead of worrying about managing investment property/funds. It’s wonderful.

You know why I came from family money? Because my parents, grandparents, and great grandparents could all build wealth by utilizing leverage.

I don’t even want that kind of wealth. I don’t want my kids to value wealth above all else. I want them to value education, friendships, and strong values. They have everything they need and some things they want. That is enough.

Very hard cope.

Hmm. But are you happy? I am. I have a strong marriage and great kids.

Money only gets you so far. I know quite a few very wealthy, VERY miserable people. I am happy with my choices.

Dp but agree that you’re doubling down on the hard cope. If you’re so happy you don’t need to say it like this. And probably not on dcum lol.

DP. It's ok to say you're happy. Some people are and will mention it rather than complain about their spouses and children.

I think those people would say it in passing, not use it to take digs at other people.

[Anonymous]

Anonymous wrote:

Anonymous wrote:$1.5M mortgage at 2.625%.

You still owe more than $1.5 million even with a low interest rate. That’s a lot of debt.

It’s called leverage. Agree that’s it’s not for the faint of heart.

[Anonymous]

300k mortgage left on a house worth 700k
40k in car loans

age 44
HHI 320k

[Anonymous]

Anonymous wrote:

Anonymous wrote:$575k on a house in Fairfax County at 2.8%. Worth $900k-$950k, and will be paid off in 15 years.

$350k on our vacation home at 4.25%.

$50k in car loans. One will be paid off in three years, the other in two. We keep our cars awhile, so no plans to increase this.

No student loans. DH and I both paid them off years ago.

We're 38 and 40 with an HHI of $415k, so $975k in debt doesn't seem unmanageable or unreasonable.

We know a similarly aged couple with an HHI of $350ish and $2.2 million in debt. I couldn't fathom that.

How do you know the full extent of their HHI and debt?

Government employees and they got drunk one night and told a group of people. Awkwardddd

[Anonymous]

280k mortgage
36k in auto loans
29k in student loans
10k in CC debt

[Anonymous]

Anonymous wrote:

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Anonymous wrote:800k mortgage on a 1.4 house. Nothing else.

Nothing else, says the person almost a million dollars in debt!

they didn't say anything about their total net worth, even setting aside the equity in the house which more than covers their debt. You do understand how 800k in unsecured debt (credit cards, student loans) is very different than a loan on an asset where they still have more than 40% equity?

I've got a 1.2 mortgage on a 2.2M house at a 2.5% rate, no other debt. Plenty of assets elsewhere. and to answer someone else's question, PITI is 7100.

This. We have $700k in mortgage debt, on a house worth about $1.3m (or something like that, it may be more, prices are going nuts these days), at 2.625% interest, and no other debt. I have no intention of paying it off before retirement, or even after I retire, at that rate. I suppose we could have prioritized paying it off, but that would have been supremely ill-advised, both in the abstract and as life turned out - we need the greater liquidity to pay for some costly medical treatments and therapies.

The anti-debt evangelicals are just so myopic.

We paid off our house and it’s freeing so we can pay for other thing like medical. The difference is living under our means. Our house is ver small and under $400k, yours is worth three times what ours is.

Not in the DC area, huh?

I don’t know where that poster lives but you can find fixer-uppers in my Silver Spring neighborhood for $400-450k.

Context is important. Just because someone can currently find a home somewhere in the DMV doesn't mean it likely that a person discussing a paid off home is from the DMV.

I wish these posters who stumbled on this board from other areas would preface their location in their response.

Yes, I am. We bought fixer upper that you’d never buy and diy most of it except roof and siding. After a few years refinanced to 15 from a 30 which kept our payment the same but we paid in a few hundred extra each month. Then we recast a few times and always paid the same amount with more going to principal. Not hard to do.

So where is your paid off home in DC that’s worth under $400K after DIY fixing it up?

[Anonymous]

Anonymous wrote:

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Anonymous wrote:How do people have such low mortgage balances in the DC area? Are the people responding people who have owned their homes 20+ years?

I think this thread is getting more responses from people pleased with their lack of debt.

Like me! Zero. Paid off mortgage on $1m property by age 35, paid off $75k student loans by age 27.

I value a debt-minimal life because it allows us to be able to afford private school comfortably on a 250k HHI, as well as decent travel a few times per year. We pay cash for vehicles.

Nothing to be proud of. You poured money into an illiquid vehicle that was likely to appreciate anyway and you could take out extremely cheap debt to cover, missing out on putting all that extra free cash flow into the stock market, which has had a massively historic run up, nearly doubling. You’d have enough cash in the market now to more than pay your house note and would be sitting on - 2.5%-3% rate.

You lost millions in net worth. But at least you can brag about being debt free!

You are probably from family money.

I grew up very, very poor with a lot of insecurity in my life. I now never have to worry about money again. I literally never think about it. It automatically transfers into different accounts and savings vehicles, and I spend what I want, which is modest.

It has been incredibly freeing. I spend my time with my family and friends instead of worrying about managing investment property/funds. It’s wonderful.

You know why I came from family money? Because my parents, grandparents, and great grandparents could all build wealth by utilizing leverage.

I don’t even want that kind of wealth. I don’t want my kids to value wealth above all else. I want them to value education, friendships, and strong values. They have everything they need and some things they want. That is enough.

Very hard cope.

Hmm. But are you happy? I am. I have a strong marriage and great kids.

Money only gets you so far. I know quite a few very wealthy, VERY miserable people. I am happy with my choices.

Cope cope copeity cope, cope cope copeity cope!

If coping is having a great and financially stable life, absolutely.

Why do you feel this way about someone content with less? What about your wealth and life situation makes you feel so aggressively in favor of measuring your worth financially? I am serious. The happy people I know with money don’t do this.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How do people have such low mortgage balances in the DC area? Are the people responding people who have owned their homes 20+ years?

I think this thread is getting more responses from people pleased with their lack of debt.

Like me! Zero. Paid off mortgage on $1m property by age 35, paid off $75k student loans by age 27.

I value a debt-minimal life because it allows us to be able to afford private school comfortably on a 250k HHI, as well as decent travel a few times per year. We pay cash for vehicles.

Nothing to be proud of. You poured money into an illiquid vehicle that was likely to appreciate anyway and you could take out extremely cheap debt to cover, missing out on putting all that extra free cash flow into the stock market, which has had a massively historic run up, nearly doubling. You’d have enough cash in the market now to more than pay your house note and would be sitting on - 2.5%-3% rate.

You lost millions in net worth. But at least you can brag about being debt free!

You are probably from family money.

I grew up very, very poor with a lot of insecurity in my life. I now never have to worry about money again. I literally never think about it. It automatically transfers into different accounts and savings vehicles, and I spend what I want, which is modest.

It has been incredibly freeing. I spend my time with my family and friends instead of worrying about managing investment property/funds. It’s wonderful.

You know why I came from family money? Because my parents, grandparents, and great grandparents could all build wealth by utilizing leverage.

I don’t even want that kind of wealth. I don’t want my kids to value wealth above all else. I want them to value education, friendships, and strong values. They have everything they need and some things they want. That is enough.

Very hard cope.

Hmm. But are you happy? I am. I have a strong marriage and great kids.

Money only gets you so far. I know quite a few very wealthy, VERY miserable people. I am happy with my choices.

Cope cope copeity cope, cope cope copeity cope!

If coping is having a great and financially stable life, absolutely.

Why do you feel this way about someone content with less? What about your wealth and life situation makes you feel so aggressively in favor of measuring your worth financially? I am serious. The happy people I know with money don’t do this.

NP here. What are you talking about? The PP is responding to someone who completely switched the subject from money to "well I have a happy marriage." We don't now if he or she is content with less. We only know that he or she is content with his or her relationship.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:800k mortgage on a 1.4 house. Nothing else.

Nothing else, says the person almost a million dollars in debt!

they didn't say anything about their total net worth, even setting aside the equity in the house which more than covers their debt. You do understand how 800k in unsecured debt (credit cards, student loans) is very different than a loan on an asset where they still have more than 40% equity?

I've got a 1.2 mortgage on a 2.2M house at a 2.5% rate, no other debt. Plenty of assets elsewhere. and to answer someone else's question, PITI is 7100.

This. We have $700k in mortgage debt, on a house worth about $1.3m (or something like that, it may be more, prices are going nuts these days), at 2.625% interest, and no other debt. I have no intention of paying it off before retirement, or even after I retire, at that rate. I suppose we could have prioritized paying it off, but that would have been supremely ill-advised, both in the abstract and as life turned out - we need the greater liquidity to pay for some costly medical treatments and therapies.

The anti-debt evangelicals are just so myopic.

We paid off our house and it’s freeing so we can pay for other thing like medical. The difference is living under our means. Our house is ver small and under $400k, yours is worth three times what ours is.

Not in the DC area, huh?

I don’t know where that poster lives but you can find fixer-uppers in my Silver Spring neighborhood for $400-450k.

Context is important. Just because someone can currently find a home somewhere in the DMV doesn't mean it likely that a person discussing a paid off home is from the DMV.

I wish these posters who stumbled on this board from other areas would preface their location in their response.

Yes, I am. We bought fixer upper that you’d never buy and diy most of it except roof and siding. After a few years refinanced to 15 from a 30 which kept our payment the same but we paid in a few hundred extra each month. Then we recast a few times and always paid the same amount with more going to principal. Not hard to do.

So where is your paid off home in DC that’s worth under $400K after DIY fixing it up?

Montgomery county.