Re: Help me settle this 20 yr fixed vs 30 yr fixed mortgage debate
Why is my assumption bad? Don't just say that without saying why. There's is about $500 difference in closing costs to get the same rate on a 30 yr as I'm getting on my 20 yr.
The question I was asking was: if I take the difference between the mortgage payment on a 20 year and 30 year fixed and invest it, what is the required return to beat the advantage of using the shorter 20 year financing period?
Going the investment route takes too much risk and also extra time, effort, and discipline to follow through. 8% for 20 years in a row doesn't even break even. How do you think you can convince yourself you can get 9% ROI for 20 years in a row? If you're good maybe you can, but I recognize that I probably cannot.
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