4 ms·

I’m paying 2.5% on a 30 year fixed mortgage with no prepayment penalty. Genuinely curious what about that is insane - just the length? Because it sounds like al

by defen 6y ago

I’m paying 2.5% on a 30 year fixed mortgage with no prepayment penalty. Genuinely curious what about that is insane - just the length? Because it sounds like almost-free money to me.

Eric_WVGG 6y ago
I guess I just have a personal aversion to debt. I would never have guessed this was normal! Well, fair enough, and according to another reply here the mortgage calculator I used was inaccurate. I still feel confident that an $850/mo mortgage is feasible in SLC. Surprised that I’m getting more flack here for my feelings about debt than the subtle shade I threw the region :)
- spiffytech 6y ago
  Avoiding debt is very laudable, but home ownership is the place where even avid debt-haters like Dave Ramsey admit a loan is the only way most folks can do it. Nearly everyone who owns a home does it with a mortgage, usually 15/30 years. Fixed rate seems out of fashion these days, but it's far from dead.
- defen 6y ago
  > I guess I just have a personal aversion to debt. I would never have guessed this was normal! Where do you draw the line? If someone offered you a 30 year loan at 0% interest, you'd take it, right?
  - Yetanfou 6y ago
    Not necessarily, it depends on what the money is meant for. A loan is still a loan, no matter whether interest is charged or not. It creates a liability which can have dire consequences if the conditions are not met. I only ever took out one loan, a partial mortgage for a house I bought in the Netherlands. I sold that house 6 years later for close to double the price, paid off the loan, bought a farm in Sweden cash in hand for the proceedings and never looked back. I never took out a study loan - living cheaply on a farm (I studied at an agricultural university) so I skipped that burden as well. No loan means no liability, clear and simple. I will not take out personal loans, instead I'll postpone the purchase until I can afford it out of hand.

by defen 6y ago

I’m paying 2.5% on a 30 year fixed mortgage with no prepayment penalty. Genuinely curious what about that is insane - just the length? Because it sounds like almost-free money to me.

Eric_WVGG 6y ago

I guess I just have a personal aversion to debt. I would never have guessed this was normal! Well, fair enough, and according to another reply here the mortgage calculator I used was inaccurate. I still feel confident that an $850/mo mortgage is feasible in SLC. Surprised that I’m getting more flack here for my feelings about debt than the subtle shade I threw the region :)

spiffytech 6y ago
Avoiding debt is very laudable, but home ownership is the place where even avid debt-haters like Dave Ramsey admit a loan is the only way most folks can do it. Nearly everyone who owns a home does it with a mortgage, usually 15/30 years. Fixed rate seems out of fashion these days, but it's far from dead.
defen 6y ago
> I guess I just have a personal aversion to debt. I would never have guessed this was normal! Where do you draw the line? If someone offered you a 30 year loan at 0% interest, you'd take it, right?
- Yetanfou 6y ago
  Not necessarily, it depends on what the money is meant for. A loan is still a loan, no matter whether interest is charged or not. It creates a liability which can have dire consequences if the conditions are not met. I only ever took out one loan, a partial mortgage for a house I bought in the Netherlands. I sold that house 6 years later for close to double the price, paid off the loan, bought a farm in Sweden cash in hand for the proceedings and never looked back. I never took out a study loan - living cheaply on a farm (I studied at an agricultural university) so I skipped that burden as well. No loan means no liability, clear and simple. I will not take out personal loans, instead I'll postpone the purchase until I can afford it out of hand.