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]A $500K 30 year mortgage at 2.5% generates $213,323 in interest payments over 30 years. A $500K 15 year mortgage at the same rate generates $100,146 in interest. This is a $111,177 savings over 30 years. Furthermore, most 30 year mortgages carry higher APRs, thereby increasing the value of a 15 year even more.

If the plan is to just pay extra principal...why not get the 15 year to begin with?!? Answer: the obsession with living beyond ones means. Proof: the fact that so many other expenses incurred are for substantially lower quality goods and services. Look at me ma! I live in a 5000 sqft plastic palace. Oh, BTW, we're eating Kraft mac and cheese for dinner on cheap plates from walmart. And don't mind the air matress on the floor in the guest bedroom....[/quote]

People are smarter than you. They spend beyond their means on housing. That’s very smart. Homes are assets that appreciate in value. They spend the minimum on goods and services because they are depreciating assets.
You do the opposite. You spend little on your house and overspend on depreciating cars, furniture and dinner plates. Not smart.[/quote]

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