2 ms·

I am this person. I refinanced from a 20 year at 3.6% to a 30 year even lower. I could have afforded a 15 year rate, but intentionally chose the longer term. Th

I am this person. I refinanced from a 20 year at 3.6% to a 30 year even lower. I could have afforded a 15 year rate, but intentionally chose the longer term. The payments are lower and give me more cash now to put in the market and earn significantly more than my mortgage rate. At the moment, my mortgage is dramatically lower than inflation. I would take almost unlimited credit at this interest rate and not pay it back early; several hundred thousand was a no-brainer.

AlbertCory 4y ago
OK, good for you. Many or even most people would just spend the extra money, not "put [it] in the market and earn significantly more than my mortgage rate." The default rates after the 2008 crash proved that. EDIT: The parent post is a modern sophisticated financial theory, and it's absolutely correct. Your great-grandparents, who lived through the Depression, might have a much different take: "Debt is bad. Do not have any debt." That's irrational, for sure. It probably resonates with you on some level, though.