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][quote=Anonymous][quote=Anonymous]a 15 year mortgage is, mathematically, one of the dumbest things you can do. Not a single financial expert would agree with you...unless you're Dave Ramsey ;)

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Absolutely amazing the sheer stupidity that exists on this website. So many overextended liberals desperately trying to justify their attempts to a more luxurious and undeserved lifestyle. A 15-year mortgage is, quite irrefutably, mathematically superior in all regards. [/quote]
Not if you put that extra money in the stock market. I don't want all my money tied up in an illiquid asset. [/quote]

People who flock to 30 year mortgages [b]love[/b] to boast about their newfound budget flexibility for savings and investment, when in fact it is almost always used to buy a house that otherwise could not have been afforded or to free up money for spending or investing, simply to maintain par with the 15 year crowd.

Here’s a [u]typical budget of someone with a 15 year mortgage[/u]:

They are already investing 20% of their HHI into investments for retirement, 5% into a taxable brokerage for long-term wealth development, 1-2% into the stock market within their HSA, 3-4% into investment for future car purchases (please don’t tell me you take out loans for a depreciating asset), and 3% per child into a 529 plan.

A family of 5 is already putting nearly 40% of their HHI into the stock market for various wealth building and savings goals. Another 30% is easily lost to income and various property taxes, which leaves only 30% of HHI available for mortgage, insurance, food, clothing, vacations, etc…. How is this tying up most of your wealth in an illiquid asset? 30 year advocates have no idea how outmatched they are by the financial strength of those with 15 year mortgages. Put the two groups side-by-side and perform a comparative analysis of average HHI and NW and the 15 years will be an order of magnitude greater. 
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Oh, spare us! Nobody saves 40% of their HHI like this and nobody saves/invests money in advance to buy a car!!  :roll: [/quote]

Yes, they do![/quote]

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