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]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.

[b]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.  
[/quote][/b]

Ok, so this philosophy DOES depend on the idea that this "financial wisdom" requires starting out with a lot of money. People who can't afford to max out all those things AND have shelter have to make harder choices. [/quote]

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