Quote:
Originally Posted by Traum
Of course, that doesn't exclude the fact that some of them have / will buy again and move into something bigger, and thus starting the 25 year mortgage game all over again. But the general impression that I have with 30 years mortgages is you don't want to get into them unless you enjoy paying lots of interest.
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Don't paint everyone with the same brush.
Some people with a prime minus mortgage may take longer to pay off the loan and use the extra cash to invest in other things that pays a return that is higher than the interest on the mortgage.
Some people over extend themselves with the 30 year mortgage. Why buy a $500,000 place when you can buy a $XXXXXX place and pay the same amount per month for an extra 5 years.
Sometimes life happens. The initial plan is to double up and pay it off ASAP then someone gets pregnant, laid off, the couple breaks up, home reno's, expensive wedding, vacations, new cars..... etccccc......