Reply to Why are DCUM salaries so much higher than in "real life"?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Ok this is just bullshit. Plenty of financial advisors recommend the 30 over the 15. paying 0.5-1% more to retain financial flexibility (even if you could pay) seems like a fair tradeoff. Plus if you believe in any decent expected returns, you want to minimize home payments. We take our savings from our 2.5% 30-year re-fi and buy I-bonds and equities. We could've done a 15 year at 2%, but that would have be a silly move.[/quote]

No doubt it would have been a silly move. You would have been struggling every month to make ends meet with a 15 year mortgage.

Your argument is just the proving that 15 year mortgages are the way to go for the financially responsible. The only financial advisors that recommend 30 over 15 are dealing with exceptionally immature and greedy customers that insist on buying a home outside their price range with a 15. The financial flexibility you reference is just as possible with a 15 year mortgage, no? With a 15 year I can easily make extra principal payments whenever I choose. Moreover, if you find it necessary to stretch to a 30 year so you can afford to invest more into the stock market, then you can’t possibly be appropriately diversified.

I have a 15 year mortgage and it constitutes 20% of my take home pay. This leaves 80% for all other expenses, with tons of financial flexibility. And, considering that I’m [i]already[/i] putting 20% of my gross pay into the stock market, I can easily throw another 20% into 529 and taxable brokerage accounts to bring it up significantly more. For every dollar I invest in my home, I am still investing almost 5 in the stock market. Why would I feel it necessary to push even more into stocks?

Clearly, the [b]only[/b] way you can afford to invest in stocks is by leveraging your so-called financial flexibility from a 30 year mortgage. Pathetic. [/quote]

Yeah but you live in a shithole to afford those mortgage payments on a 15yr don’t you? You think your plan is so great but 20-30 years later, you and the people who got a nicer house with a 30 yr mortgage are going to have the house paid off and around the same net worth. And they would have lived much better than you, so no need to be smug.[/quote]

There is some truth to this, I suppose. Because we went with a 15 year mortgage, we could only afford a $7.6M home in Wesley Heights. As you point out, we could have gotten more if we went with a 30 year. Not too many $12M+ properties were available, though. Instead, we’re building equity on our dump of a home and only have $25M invested in the stock market. Wonder what we’re missing out on?[/quote]

BTW, in 15 years my home will be worth $11M and my $25M invested today will be worth $80M. In 15 [b]more[/b] years, that house will be worth $15M and my portfolio will be worth $255M. Uh, so good luck with that 30 year!! I feel bad for you. You don’t even know how outmatched you are. [/quote]

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