This information is incredibly useful and I wish I had it 20 years ago. I send it to my kids so they know the available options. I had a 30 and refi that down to a lower rate at 15 a few years ago. Didn't take out any equity. I "retire" from my job in 11 years so I wanted that mortgage paid in full around that date. When I transition to something else after "retirement" I won't have the payment. In most cases the 30 just makes more financial sense.
Each personal finance decision is personal. My goal is to guide and inform so everyone can make a decision with all the information they need to weight the pros and cons.
As the market changes and your personal situation changes, if you understand how to think about it, you can continue to make winning choices.
I had never thought about the opportunity cost of a 30 vs 15. It was drilled into my head to just pay off the debt. My kids, now all adults, have benefitted from substacks like yours and others. I'm able to curate the good stuff for them. Appreciate it.
100% you need to update the rules for the way the world changes.
Different posts target different people.
primary residency handling should be similar for everyone though in my opinion. You don't want to do anything crazy with your main home.
If you were able to lock in a sub-3% mortgage rate vs a 6% mortgage rate it changes the math on how to handle your mortgage. ie- higher opportunity cost to invest vs paying down the mortgage.
That is the same whether building wealth or being an average joe.
Only real big difference is a hustler building wealth may look to use home equity to leverage their business or sink all their CF into a business. But its the same opportunity cost question.
This information is incredibly useful and I wish I had it 20 years ago. I send it to my kids so they know the available options. I had a 30 and refi that down to a lower rate at 15 a few years ago. Didn't take out any equity. I "retire" from my job in 11 years so I wanted that mortgage paid in full around that date. When I transition to something else after "retirement" I won't have the payment. In most cases the 30 just makes more financial sense.
100%.
Sounds like it worked out for you.
Each personal finance decision is personal. My goal is to guide and inform so everyone can make a decision with all the information they need to weight the pros and cons.
As the market changes and your personal situation changes, if you understand how to think about it, you can continue to make winning choices.
DMs always open to BowTies (and their fams)
I had never thought about the opportunity cost of a 30 vs 15. It was drilled into my head to just pay off the debt. My kids, now all adults, have benefitted from substacks like yours and others. I'm able to curate the good stuff for them. Appreciate it.
100% you need to update the rules for the way the world changes.
Different posts target different people.
primary residency handling should be similar for everyone though in my opinion. You don't want to do anything crazy with your main home.
If you were able to lock in a sub-3% mortgage rate vs a 6% mortgage rate it changes the math on how to handle your mortgage. ie- higher opportunity cost to invest vs paying down the mortgage.
That is the same whether building wealth or being an average joe.
Only real big difference is a hustler building wealth may look to use home equity to leverage their business or sink all their CF into a business. But its the same opportunity cost question.