15 vs 30 Year Mortgage: Which Is Actually Better?

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4.7 • 1.1K Ratings

🗓️ 7 March 2022

⏱️ 6 minutes

🔗️ Recording | iTunes | RSS

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Summary

Jesse compares the pros and cons of the 15 year vs the 30 year home mortgage. While there are plenty of online calculators out there that will spell out the difference in interest costs and amortization between the two, Jesse argues that perhaps the math isn't the most important factor. It's how you feel about paying off the mortgage earlier.

Transcript

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0:00.0	Hello, Wine Abbers. My name is Jesse Meakin with another episode of the Wine Ab Podcast.
0:08.4	We'll be teaching you four rules to help you stop with impagic tapeagec. Get out of debt
0:12.0	and save more money. One of the ways you can save money is by optimally managing your
0:21.0	mortgage. Not a second mortgage. Don't have second mortgages. But for the one mortgage,
0:26.0	for the first mortgage, for the primary mortgage, for the only mortgage, do you want to go
0:29.8	15 or 30-year? And I used to be of the opinion that you should go 15-year because the interest
0:35.6	rate is lower, meaning you'll pay less interest, meaning you'll save money. But that was a long
0:41.1	time ago. I probably had a decade ago changed my mind on that. I actually really enjoy the
0:46.5	optionality of a 30-year mortgage traded, like a 15-year mortgage. I'm going to make up numbers
0:52.5	just because I didn't bother to pull up actual comparables between 15 or 30-year. But I love,
1:00.7	so first of all, I love the idea of you paying off your mortgage early if you fill some energy
1:05.1	there. And that really is the legitimate lens through which you can make that decision is
1:10.2	imagining myself paying off this mortgage. Do I fill energy there? And if you do not, then maybe
1:15.2	you fill more energy investing. But I take issue with people saying, oh my gosh, I can't believe
1:20.6	you paid off your mortgage. You could have made so much more money investing. But those people,
1:24.3	a lot of the time, that are making that objection, that math oriented objection are not doing either.
1:29.2	So show me the person that has deliberately said, here is an extra $300 I would put toward my
1:34.4	mortgage to pay it off early, but instead I am investing it. That's real. That's legit. But so
1:41.0	many people just object theoretically to you paying off your mortgage early. They don't actually take
1:46.7	the difference and invested in the market and supposedly make all this extra money on that spread.
1:51.9	So you do you, and I mean that really, if you fill a lot of energy around paying off the
1:55.8	mortgage early, then you do it. So I personally felt a tremendous energy being mortgage free.
	...

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