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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]This place is full of financial fools. [/quote]

Meaning what exactly since I'm assuming YOU are not one of us financial fools?[/quote]

Meaning until a year or two ago interest rates were 2%. It's free money. [/quote]

Lol, no, it's not free money.  Even if you locked in a 3% mortgage and inflation averages 3% for the next 28 years, that just means your real, effective interest rate is 0%.

But you still owe every penny of the $800K principal you borrowed, and this must be paid back according to a rigid schedule whether or not you're sick, have lost your job, etc.  And if you can't make those payments, the bank can take your house.  Not my definition of free money.[/quote]

While that's all true, if you take out a mortgage you could easily afford with retirement income, it's fine. Honestly, taking out a mortgage at 45 or even 55 or 65 is in someways easier to plan for because by then there is considerably more predictability in your life. Like at 45 I know with a decent amount of certainty what my monthly income from my pension and social security will be at 62. Whereas when I was 30, I truly had no idea what my income was going to be at 45. I had some guesses but couldn't tell you with any confidence.

I mean, I guess if you are 45 with no retirement savings and working an hourly job with no job security, I would stress about the burden of taking out a mortgage. But I'm guess that is not many people on this website. I don't even have close to the income or savings of a lot of people on here, but I'm in an extremely stable place financially at this point with good predictability. I also have life insurance for my kids, great health insurance so I am unlikely to be destroyed by an illness, and we have supplemental insurance in case of emergency, so I think even in the case of something catastrophic happening, we'd be bel to make our mortgage payments to avoid foreclosure (and could sell if we needed to).[/quote]

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