Why Only A 15-Year Mortgage?
Nikki wants to know why Dave only recommends 15-year mortgages. Dave is happy to help Nikki understand.
QUESTION: Nikki on Twitter wants to know why Dave only recommends 15-year mortgages. Dave is happy to help Nikki understand.
ANSWER: I recommend 15 years or less but never more because the normalization of the 30-year mortgage has created a constant state of bondage for the middle class. The normalization of the 30-year mortgage has caused people to lose hope of ever being debt-free including their home. But when you have a 15-year mortgage, it costs just a few dollars a month more. It’s not double. It’s only 20–25% more per month than the traditional 30-year mortgage. It saves you 15 years of your life in bondage. People who take out 15-year mortgages have a higher probability of paying them off early. They believe they’re going to be debt-free someday. Broke people ask how much down and how much a month. People who are rich or who are going to be rich ask how much. What’s the total price? The largest part of getting out of debt is that you can. There’s something weird about that 15-year mortgage that allows you to do that. It might be the fact that it’s only 15 years.