Wow just as bad as a balloon payment
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There was a time in this country when there was no such thing as a "mortgage" on a house. 5 year loan due in full. Yes you could refi but a 30 year loan was unheard of and when first proposed deemed financially irresponsible. We've certainly gone to the other extreme.
I don't have a car payment or a mortgage (I have a medical condition that apparently makes me allergic to debt) but last car I bought I got financing through the credit union for 5 years which I thought was absurd. Why did I do it? It was 0.9%. I did it gladly .
Hate to sound condescending but someone who signs up for $1000/mo payment for 7 years on something that will be worth 30% of its original value at payoff and while still carrying a far-out mortgage is a certified dumbass- financially speaking, of course. Throw $1000/mo at your mortgage principal for 7 years and see how many years it shaves off the the term how many shiny new trucks worth it saves you in interest.
That's not condescending - That's just fact! I have helped 3 of my kids buy cars over the last few years. The ONLY question the sales weasel wanted to know was what kinda "payment" are we looking for. My answer was NONE! We are buying a car not a payment! I had to keep my kids focused on the actual cost of the car and not the easy to make "payment" they were selling. I mean it's only $225.00 a month, right?
If you dont have the cash, you cant afford it.If you have to spread payments out over 7 years you can't afford it!! Not sure why that is such a hard concept to grasp for some people.
I understand the disdain but why do y'all care so much about how others spend their money? I don't care if you take 15 years paying off your 100k truck as long as you aren't on welfare. None of my business.