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It's basically free money considering that real inflation in the USA is closer to 5-7% every year rather than the 1-3% the BLS publishes. Besides, you really can't find a better tax shelter than real estate either, other than perhaps maxing out your 401k every year, but that's debatable depending on what you're working with.
And with inflation ramping up now, perhaps in the 8-10% range in the coming years you'd be a fool to not have hard assets. Over 30 years your mortgage becomes less and less, but rent will always go up with the market. At 2.5% the bank is essentially handing you free money, and you'll get to pay it back with Zimbabwe Bux when it's all said and done.
And that, folks, is also why I always advocate just getting the bigger/better house in a great area. What's a few thousand extra spread out over 30 years to get the better house rather than the dumpy 80 year old starter home in a marginal area that's crumbling apart? In the long run the bigger/better house is going to be cheaper. Think about it.
It's basically free money considering that real inflation in the USA is closer to 5-7% every year rather than the 1-3% the BLS publishes. Besides, you really can't find a better tax shelter than real estate either, other than perhaps maxing out your 401k every year, but that's debatable depending on what you're working with.
And with inflation ramping up now, perhaps in the 8-10% range in the coming years you'd be a fool to not have hard assets. Over 30 years your mortgage becomes less and less, but rent will always go up with the market. At 2.5% the bank is essentially handing you free money, and you'll get to pay it back with Zimbabwe Bux when it's all said and done.
And that, folks, is also why I always advocate just getting the bigger/better house in a great area. What's a few thousand extra spread out over 30 years to get the better house rather than the dumpy 80 year old starter home in a marginal area that's crumbling apart? In the long run the bigger/better house is going to be cheaper. Think about it.
What about getting a 10 Year?
I've been thinking about it
Easy enough to get a 15-year and pay it off in 10. That way you've got some flexibility. The only disadvantage is that you'd probably get a slightly lower interest rate on the 10-year.
Easy enough to get a 15-year and pay it off in 10. That way you've got some flexibility. The only disadvantage is that you'd probably get a slightly lower interest rate on the 10-year.
OUr broker told us shorter term mortgages are not much lower if at all. Investors are looking for long term safe havens, so the 25 and 30 year mortgages are being driven down to the prices for 15 years. A month or two ago 15 was still a lot cheaper, now hardly at all.
The thing to watch are the costs. Quicken originally told me I needed to pay $10,000 in costs and fees. The refi I am going with, they are apparently giving me money. (lender credits exceed costs).
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