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My 30 year mortgage is at a low enough rate that paying it off quicker would be a poor financial decision. Dave Ramsey is not always right. I also use credit cards, he says I should be doomed for doing that too, but in reality I profit quite decently from the rewards.
I am not a Dave Ramsey fan however the idea of using a 15 year mortgage with at least 10% down and payments no more than 25% of your take home pay is a pretty good idea. It will limit your home purchase to what you can afford rather than what the bank will lend you.
The word "scam" is often used by people who either don't understand something, or are actually the ones trying to "scam" you.
There's nothing wrong with a 30 year mortgage. With rates this low, paying off the debt faster offers very little savings compared to what the money could be used for otherwise.
For example, I'm maxing out my 401k contributions. I doubt I'd be able to contribute as much if I had to pay my mortgage at a 15 year rate. And the amount I'll earn by taking advantage of the tax savings and investing over a long period of time is much higher than my mortgage interest costs.
but you can always pay a 30 year mortgage in 15 years. but you can't do the reverse if bad times strike you.
absolutely true. It sucks if you are so tied in that you cannot go on any vacations or buy anything. Rather go with a 30 year and make extra principal payments and be done in 15 years!
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