maat, I think the point is that if your goal is a paid off home, you can accomplish the same thing as Dave Ramsey suggests in a safer way by taking the 30-year loan and saving/investing on your own until you have enough to pay off the balance of the mortgage. By doing it that way, you retain access to those funds if some other need were to arrive (like unemployment or illness) and, most likely, get a higher return on your money in the process which actually gets you the paid off home faster than the other way. The 15-year loan ties your hands and limits your options moreso than the 30-year loan. Neither way is "right" or "wrong" but one way is better.
Another question for you: I have more than enough in savings to pay off our mortgage right now. Would Dave Ramsey's system have me pull the money out of savings to pay off the loan?
__________________
Steve
* Despite the high cost of living, it remains very popular.
* Why should I pay for my daughter's education when she already knows everything?
* There are no shortcuts to anywhere worth going.
|