Reply to If you don't have a 15 year mortgage, you're living beyond your means?

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Reply to "If you don't have a 15 year mortgage, you're living beyond your means?"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]What?  No OP, anybody who didn't lock in an ultra-low 30-year fixed rate loan during inflationary times is stupid.

Long-term, fixed rate debt is a great hedge against inflation.[/quote]

Let us know how that works out for you in a few years after we see a repeat of the 2008 housing bubble burst and your home price drops by 25%. Now you’re embarrassingly underwater. You also started pouring your newfound monthly wealth into the stock market, only to discover you started your foolish venture at an S&P 500 peak of 4800+. It took the S&P 500 7 years to regain ground after the dot-com bust. Then, it lost traction again in 2007 thanks to people like you leveraging themselves to the max. Some 12 years it took for the S&P 500 to recapture its value from before the dot-com bust. The annualized return over that period? 0%. A far cry from the 150% return that we theoretically should have seen over an average 12 year period. [/quote]

Houses in the DC area didn't drop 25% in 2008. The only people who might be underwater if there is a 10% drop are those who bought in 2021 with no downpayment. And I don't think no downpayemnt loans are common these days like they were in 2008.[/quote]

Exactly.[/quote]

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