The 10-Year Mortgage

LaTonya asks what Dave thinks about 10-year mortgages. Dave loves them.

QUESTION: LaTonya on My Total Money Makeover asks what Dave thinks about 10-year mortgages. Dave loves them.

ANSWER: They’re better than 15-year mortgages. They’re not as good as five-year mortgages or no mortgage. I love short-term mortgages. Get them paid off. Now no balloons and no adjustable rates, but short-term mortgages—that’s a great idea.

I like getting people to sit down—with these interest rates like they are, I like getting people to sit down and they look around and they go, “Wow! You know, I could put this on a seven-year. I could be out of debt in seven years.” You could treat your mortgage . . people put car payments on seven years now! What if you put your mortgage on seven years? It’s a different mindset. It’s a different way of going at it. That’s how it works.