4 ms·

Interest rate below inflation? I don’t care about that 300k, I would have lost it to inflation anyways. Mortgages let you pay 2052 dollars against 2022 prices

Interest rate below inflation? I don’t care about that 300k, I would have lost it to inflation anyways. Mortgages let you pay 2052 dollars against 2022 prices and that’s under appreciated by the financially illiterate.

joshstrange 4y ago
Exactly. My mortgage is at 2.25%, I'd be a fool to pay that off early in the current climate. I am stuck with PMI and I might consider refinancing or something like that in the future but if I can't get the lower rate then it might be worth it to keep paying. One of the hardest things for me w.r.t. finances is removing the emotional aspect. I don't get worked up about a fee added onto my mortgage because when looking at it over a longer period of time it's insignificant compared to what I can do instead with my money. Like right now I could pay off my remaining student loans without issue but why would I while they sit at 0%? If they restart payments I'll wipe it out and there is a part of me that just wants them gone but it would be an emotional decision not a financial one. Paying off my car early was right on the line and I probably made more of an emotional decision when it came to that but no one is perfect.
- tjr225 4y ago
  You can also eliminate your PMI if you can appraise your home at a price that escapes the difference, so keep an eye on that.
  - joshstrange 4y ago
    I thought at some point I read that FHA loans don't have that? I'll look more into again in a few years when my house will appraise high enough.
  - throwaway6734 4y ago
    Certain loans (like fha loans) have PMI for life
  - germinalphrase 4y ago
    Is an appraisal enough or is refinancing required?
    - bombcar 4y ago
      Check your loan documents, mine have often had a "if valuations go up you can pay for an appraisal when you cross 20% or it's assumed if valuations have gone up enough AND enough time has passed". Usually it auto-expires when you pass the 20% equity mark based on original sale price. It's easier with a local lender as opposed to someone who sold off the mortgage, of course.
- illegalsmile 4y ago
  I'm guessing your mortgage doesn't remove PMI after a certain number of years or 80% LTV?
lr4444lr 4y ago
The greatest vehicle ever for the common man to leverage debt to his advantage.
abrichr 4y ago
> Mortgages let you pay 2052 dollars against 2022 prices and that’s under appreciated by the financially illiterate. Can you please clarify, or point towards additional reading material?

joshstrange 4y ago

Exactly. My mortgage is at 2.25%, I'd be a fool to pay that off early in the current climate. I am stuck with PMI and I might consider refinancing or something like that in the future but if I can't get the lower rate then it might be worth it to keep paying. One of the hardest things for me w.r.t. finances is removing the emotional aspect. I don't get worked up about a fee added onto my mortgage because when looking at it over a longer period of time it's insignificant compared to what I can do instead with my money. Like right now I could pay off my remaining student loans without issue but why would I while they sit at 0%? If they restart payments I'll wipe it out and there is a part of me that just wants them gone but it would be an emotional decision not a financial one. Paying off my car early was right on the line and I probably made more of an emotional decision when it came to that but no one is perfect.

tjr225 4y ago
You can also eliminate your PMI if you can appraise your home at a price that escapes the difference, so keep an eye on that.
- joshstrange 4y ago
  I thought at some point I read that FHA loans don't have that? I'll look more into again in a few years when my house will appraise high enough.
- throwaway6734 4y ago
  Certain loans (like fha loans) have PMI for life
- germinalphrase 4y ago
  Is an appraisal enough or is refinancing required?
  - bombcar 4y ago
    Check your loan documents, mine have often had a "if valuations go up you can pay for an appraisal when you cross 20% or it's assumed if valuations have gone up enough AND enough time has passed". Usually it auto-expires when you pass the 20% equity mark based on original sale price. It's easier with a local lender as opposed to someone who sold off the mortgage, of course.
illegalsmile 4y ago
I'm guessing your mortgage doesn't remove PMI after a certain number of years or 80% LTV?

lr4444lr 4y ago

The greatest vehicle ever for the common man to leverage debt to his advantage.

abrichr 4y ago

> Mortgages let you pay 2052 dollars against 2022 prices and that’s under appreciated by the financially illiterate. Can you please clarify, or point towards additional reading material?