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]Some of the logic in this thread makes me really wonder about the state of critical thinking skills.

For the record, we bought using a 10-year ARM since the rate was lower than both the 15 and 30 year options. And we expected to move in the 10 year horizon so it seemed to be the right call. Though we ended up refinancing to a standard 30-year when those rates hit the low 2% range and put the savings in I-bonds/equities to get essentially 'free' money.[/quote]

Can’t believe how obtuse so many of the people are on this thread. Perhaps a better question to ask would be:

[b]For all of you in the DMV area with 30-year mortgages, what percentage could have been approved as a 15-year mortgage in the same amount and with the same down payment, but purposefully chose a 30-year mortgage anyway solely to be able to invest the difference in appreciating assets at a higher return?[/b]

The answer is: [b]very close to 0%.[/b] This being DCUM, of course, the self-reported numbers are likely to aggregate to something around 90%. [/quote]

I don't know how you get the 'very close to 0' because many people have spent the last decade or so refinancing and made exactly this choice--we had very low interest rates and a great environment for the stock market.  I could pay off my house and still got a 30 year 2.25% mortgage on my last no-cost refinance.  So many other homeowners I know did the exact same thing.[/quote]

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