Do people with 1.8mil+ houses have mortgages?

[Anonymous]

How do people with so little financial sense end up with so much money??? As a finance guy myself, this thread horrifies me.

[Anonymous]

Anonymous wrote:

Anonymous wrote:$1.8M is not that much OP. That's upper middle class, and of that group the vast majority have mortgages.

I would say mortgage free would start around the $5M-$7M mark.

You are so wrong. Anybody with an ounce of financial savvy worth that much wouldn't pay cash. Mortgage rates are too low for that to make sense -- even at current interest rates.

You just outed yourself as middle class.

Quote of the year on dcum.

[Anonymous]

Anonymous wrote:$1.8M is not that much OP. That's upper middle class, and of that group the vast majority have mortgages.

I would say mortgage free would start around the $5M-$7M mark.

A $9,000 monthly mortgage payment is “not much”? Are you serious or trolling? Because we make mid 6 figures and that still sounds outrageous to us. Not at all interested in being house poor.

[Anonymous]

I always wondered this about celebrities.

Like since they have millions (+ millions!), do they take out bank loans or do they just simply outright purchase their homes in just ONE transaction!!?

I remember comedian Jerry Lewis used to brag that he purchased Louie B. Maker’s former home for himself, his wife & all six sons in cash.

That way he was confident that no one…..anyone could ever have the power to steal his home.

That it truly belonged to HIM‼️

[Anonymous]

*Mayer

[Anonymous]

I have several friends with houses in that range. None are rich (UMC) and all have mortgages. They were able to do nice down payments by selling other property so the mortgage may be on $1M. They all work and as far as I can tell nobody is struggling. Still taking vacations, sending kids to DC privates, etc.

[Anonymous]

Anonymous wrote:If they do, I’d still assume they have the cash to cover it but choose to keep it infested instead.

If you own a 2 mil house, you should have at least 6 mil in investments.

I doubt it. People that spend 2 million on a house aren't savers and also generally aren't uber wealthy.

[Anonymous]

No siree bob! I learned from Mr. David Ramsay that mortgages are for schmucks. I pay for everything in cash. Read Rich Dad Poor Dad

[Anonymous]

We own our home currently worth a little over $2 million with no mortgage. Our situation might be different because our income isn't that high, about $100k for a family of 5. We do have a high-ish net worth though and I'm always curious about how much of our assets should be in our house since I'd love to upgrade/get a second home.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Do people with 1.8mil+ houses have mortgages?

The smart ones do.

And the poor ones.

[Anonymous]

Anonymous wrote:I always wondered this about celebrities.

Like since they have millions (+ millions!), do they take out bank loans or do they just simply outright purchase their homes in just ONE transaction!!?

I remember comedian Jerry Lewis used to brag that he purchased Louie B. Maker’s former home for himself, his wife & all six sons in cash.

That way he was confident that no one…..anyone could ever have the power to steal his home.

That it truly belonged to HIM‼️

Famous celebs probably take out mortgages so that they can count all the rest of their money while sitting on their pool decks.

[Anonymous]

Anonymous wrote:How do people with so little financial sense end up with so much money??? As a finance guy myself, this thread horrifies me.

DC is packed with high earning eggheads with no common sense.

[Anonymous]

Absolutely.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I just assume that y'all are rich enough that you just have wealth in your bank accounts to purchase outright. Or do people really have million dollar jumbo jumbo mortgages?

That jumbo jumbo mortgage might have 3% interest rate.

Yes and at a 3% rate. Borrowing at 3% for an asset that is both usable and likely to appreciate over the long term and provides tax advantages is a no brainer even if you could pay all cash.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We bought our 1.7 million dollar house in 2017 with cash. No mortgage. It is now worth $2.6 million. We have made more in the last 5 years from this investment than anything else we would have invested the cash in. We have additional funds invested so this keeps things diversified.

Do you understand leverage? If you'd bought that same house in 2017 with a $1.3 million mortgage, and invested $1.3 million in the stock market at the DJIA, you'd have $1.9 million, an average 10% rate of return. Even deducting 3% interest on the mortgage, you'd still have a 7% net return and your house would still be worth $2.6 million. Your total profit would be $1.5 million vs. $900k.

Clearly having $1.7M in cash does not mean they are good with $$$.

Well, not worse than random internet experts, most of whom not have 1/4 of $1.7 million.

in guessing your the poster who just realized you forfeited over half a million dollars?