DO YOU OWN YOUR HOUSE OR DOES YOUR HOUSE OWN YOU?

Many people believe owning a big, huge, expensive home is an indication of their social status. They will do anything to own an impressive home, including getting an "interest only" loan to buy the home. Everything they make goes into paying for the home. There is no money left over for trips, dinner out, movies, plays, or shopping.

In an "interest only" loan, you only pay the interest, you never actually pay any money toward eventually owning the home. Most home loans in the US are designed so that, if you stay in your home, you will pay off the mortgage completely after 30 years. Then you can live in the home without paying anything but repairs, insurance, and property taxes. Retirement becomes much easier.

People who believe a house is a statement of their success, often do not get to enjoy the house. If every cent of your income is going into paying for your house, you can not go out to dinner, throw parties or travel. You have no money to do anything but feed your home loan.

When housing prices are going up, sometimes the owner of the huge home can refinance. But when housing prices are stable or going down, the home actually owns you, you do not own the home.

Often, the people who are owned by a home use credit card debt to get at least some of the things they can not otherwise afford. Soon they are owned by both the home and the credit card companies.

Just because you can do something, does not mean that you should do something.