The Value of Debt in Building Wealth

Appendix C

Home Purchase and Financing Considerations

Hopefully, I made it clear throughout the book that it is my opinion that too many people are too focused on home ownership too early in their life. Home ownership is a big topic during our 30s, 40s, and 50s—and it is an important topic. I am neither for or against renting, buying, fixed rates, floating rates, long amortization schedules, and short amortization schedules. Like many things in life, (1) the answer depends on your specific situation; and (2) so often I see people doing the opposite of what might be optimal. The following should be considered to be my personal opinions that are designed to help the debate around your kitchen table.

Before we dive in, if you are interested in this topic I would encourage you to turn to the Resource Guide, where I provide a list of videos with education and calculators on the following topics:

• Renting vs. Buying
• How Much Home You Can Afford
• Introduction to Mortgages
• Understanding Alternative Mortgage Options
• Adjustable Rate Mortgages
• Fixed vs. Adjustable Rate Mortgages

Being familiar with these resources will help your understanding of my perspective.

Don't Rush to Buy a House

Especially when you're young, think twice before you purchase a home. This advice isn't always popular because it goes against the American Dream. We've been taught that home ownership is the first step to financial security and stability. But owning a home comes with many hidden costs, and unless you stay ...