Housing.com News, Analysis & Opinion: Wednesday Housing News

If you paid your mortgage off, it means you probably did not manage your funds efficiently over the years. It's as if you had 500,000 dollar bills stuffed in your mattress.... [It's] very unsophisticated.'
-- David Lereah, chief economist of the National Association of Realtors and author of "Are You Missing the Real Estate Boom?

This flies in the face of advice that has worked for generations...don't buy more than you can afford. Pay your mortgage off. Save up and earn your way to a reward. Pardon me for being unsophisticated, but this guy is out of his mind.

Tapping your home's equity to finance important things like your children's education, your retirement, medical expenses, or even a vacation is absolutely a smart way to use your investment. I'm just incredulous at the notion that experts are encouraging home buyers to drain their equity in order to spend, spend, and spend.

A friend of mine always tells me that debt is a tool, and if properly managed, can be a useful means to achieve big financial successes. I may be "unsophisticated," but I prefer to think that the best way to live is free of owing anyone else anything for the things you've worked hard for.

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The L.A. Times has an interesting article on the changing attitude towards equity and debt. I think a lot of quotes in here are just chilling, specifically this one: If you paid your mortgage off, it means you probably did not manage your funds efficiently over the years. It's as if you had 500,000 dollar bills stuffed in your mattress.... [It's] very unsophisticated.' -- David Lereah, chief economist of the National Association of Realtors and author of "Are You Missing the Real Estate Boom? Wow. I'm in awe that an economist would SAY something like that. This flies in the face of advice that has worked for generations...don't buy more than you can afford. Pay your mortgage off. Save up and earn your way to a reward. Pardon me for being unsophisticated, but this guy is out of his mind. Luckily, the folks over at Patrick.net think so too. Tapping your home's equity to finance important things like your children's education, your retirement, medical expenses, or even a vacation is absolutely a smart way to use your investment. I'm just incredulous at the notion that experts are encouraging home buyers to drain their equity in order to spend, spend, and spend. A friend of mine always tells me that debt is a tool, and if properly managed, can be a useful means to achieve big financial successes. I may be "unsophisticated," but I prefer to think that the best way to live is free of owing anyone else anything for the things you've worked hard for.