Most of the world lives paycheck to paycheck. Most of the world lives their life in debt. Most of the world doesn't retire on their own terms. If not wanting to be like most of the world makes me unique, so be it.
Colby, On that we both agree. I am in the process of selling my business and am looking forward to the financial freedom that it will create for me. Having more money in the bank then you owe is a great luxury, and something that I recommend everyone aspire to attain. DD
Colby, I also disagree from this perspective. In thinking long term, by getting a the 30 year loan versus a 15 year loan you are essentially borrowing money over that period you can invest elsewhere over those 30 years. And you are getting that borrowed money at around 7% right now, plus potentially say a 25-35% reduction of that rate due to tax write offs depending on income/other factors. With a relatively conservative investment portfolio in tax deffered or Roth type accounts (no tax on earnings) it would be hard pressed to not earn more on the money you are borrowing than you are paying in interest to borrow that money. Further this requires a very long term perspective (15-30 years to be safe), in the short term it would be actually as risker strategy. I will say this in Colby's defense. It is not a bad strategy to pay the house off in 15 years, especially if someone can't get much tax benefit for mortgage interest or are already maxed out tax-defferred or Roth-type account options. You would never beat 7% through a money market or in treasuries--the safest kinds of investments you could do. So it is not a bad strategy, but I think on balance most people who are in a position to purchase a house and with a 15-30 year span to grow their money (e.g., before retirement) and who are fiscally disciplined are a better off with a more aggressive money strategy and taking the 30 year loan.
