How am I stupid? I think I've more intelligently present multiple scenarios where a 30 year outweighs a 15 year fixed rate mortgage.
I've also presented reasons why a 30 year fixed and cash in the bank instead of prepaying a mortgage.
You don't have to invest it. You can buy bonds with your extra money or leave it in a money market. If you have a 6% mortgage that's 4.5%. And you can probably earn that in a money market or a bond fund. So the risk is mitigated.
I think if anyone is being dumbed down it's me. I am tired of giving reasonable explanations of why a 30 year fixed is better than a 15 year fixed. You couldn't even understand it's not $900 on a 30 year and $900 on a 15 year fixed.
Nor do you understand why you would go bankrupt from medical issues or continued unemployement. Often times people go BK from medical issues because they can no longer work.
And how about you tell that to Boomie from the wastrelshow. She'd tell you she's 3rd generation millionaire and has been asked to be on Good Morning America. Are you as rich as she? Do you have a million in the bank? Obviously not. Then shut up she would say.
I asked the question to her a hardcore Dave Ramsey follower and she said that my plan of cash in the bank was MUCH wiser and what she tells her own kids.
Because cash is king, and until you have NO DEBT, 100% paid for home, you can lose it all.
How can you not get it? Is the math too hard to follow? That you can be unemployed or unemployable for longer than your miniscule 6 month EF?
Hate to break it to you but cancer is easily more than 1 year of treatments. Hmm..how many months longer than your stupid 6 month EF? And you made all your extra cash to a 15 year mortgage? Gee what would you do?
Cash out refinance? Bad idea, whose going to do it when you are disabled?
Cash in bank is king. Until you learn that maat, you haven't learned anything.
And Disneysteve is the major breadwinner. Sure he could pay off his mortgage but until he had enough to pay off his mortgage, by prepaying his mortgage he was putting his wife at risk.
Let's say he got into a car accident and couldn't work for 1 year, getting rehab, etc. By your plan, what would he do after 6 months? His stay at home wife, let's say couldn't work because she was caring for him and their child? Hmm...interesting scenario.
The prepaying of the mortgage is only smart if it works and nothing goes wrong. If any disability, injury, or accident occurs you'd be up the creek.
|