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]Assuming you're not a troll, yes, you're way off base. Forget whether you have a 15 or 30-year mortgage. Why would you live in a crummy neighborhood and drive a BMW? [/quote]

Pretty common for new homeowners to move into highly desired neighborhoods these days, usually millennials, being barely able to make the PITI payments even on a 30 year mortgage. Figure they'll just increase buying power over time, but then they forget to budget for things like furniture or the standard 2% of home value on annual maintenance and improvement. So, they'll buy that $1.2M home but then can't find the extra $2K per month to set aside for the occasional new roof, new HVAC, driveway paving, landscaping, etc.... House and property start looking like the neighborhood eyesore. Meanwhile many buy in during a bubble (think 2005-2007), home prices fall, and then they're also underwater because they didn't have the financial discipline to go with a 15 year mortgage. These are the same folks that lack the discipline to produce at work, end up getting laid off, and get foreclosed upon.

Anyone that has the financial wisdom to take on a 15 year mortgage has almost certainly done so [b]after[/b] having maxed out retirement at 20%+, HSA contributions, 529 plans, and [b]after[/b] having allocated sufficient discretionary budget to weather the occasional economic storm.  
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