I couldn't believe my eyes reading that home mortgage thread. So many of you believe that keeping your mortgage for 20-30-40 years is a smart thing to do. You are foolish. I am sorry but all of you who believe that your Job/Business is guaranteed to last and therefore you are guaranteed to hold the mortgage for 20-30-40 years You are not bright in my opinion. Not to mention you can get sick and lose ability to work. And whole lot of other things that can happen. And your bank is counting on that to eventually take your home. You clueless masses. You think your Bank is your friend. To make matters even worse, so many of you buy your homes completely out of your price range. You can afford lets say 150 k home. Yet you buy 250 k home. How f-in ridiculous.
I thought we were all traders here and understood the concept of a carry trade and opportunity cost. Carry trades are the base of all things financial.
It's like telling the banks to carry full reserves on all deposits and limiting their ability to put on carry trades with your money.
You and I both know there is about 20 real traders here among thousands of members. For you to join Banks point of view and give people advice to keep their mortgage until eventually they lose their home. Bad advice. Down right evil actually.
Calc, if a trader knows how to trade, then using leverage to put on carry trades is actually smart and what hedge funds and banks do everyday. Sell at 9, buy at 6 and on the golf course by 3. Doing the same with a mortgage or credit card is no different. But I have to agree, having your home paid off is a nice feeling.
Only a dullard would think that you have to pay a fixed-rate mortgage in full as soon as possible when there are much effective strategies one could employ.
IF...IF Very few here know how to trade. Vast majority have JOBS. That is how they make money. Lets be realistic here.
Just how short term thinkers are you people ? The longer your mortgage The more your bank likes you. That should give you HUGE RED ALARM That means bigger the chance that something will happen in a very unpredictable life and Bank will take your home. You will have worked half your life for nothing in the end. And bank doesn't lose at all. How much clearer do I have to make this. Are you people mentally disadvantaged or something