this post was submitted on 26 Aug 2026
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Stopping all fediverse activities. Good bye.
Absolutely stupid indisriminate bans by mods on various instances make it clear to me lemmy and fediverse does not want content.
if I ever get back to fediverse It would be on my own instance as its clear to me nothing short of that is going to work.
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The joy is you get to pay pretty much the same each month for the entire 30 years. Insurance and property taxes will increase but that is fairly small increases. Now go look at what rent was 30 years ago. Imagine paying that today instead. Don't pay off your mortgage early, don't refinance (unless you can drop >1.5%), and ride the long con.
Also, long term, pretty much any mortgage is better than renting. You're putting your money into a deep hole instead of a bottomless one.
This is highly dependent upon the math. What is your current interest rate (assuming it is fixed. If you have a variable rate... Oof)? What do you expect inflation to be? What other things could you be doing with your money, and when? How secure do you feel about your current income as opposed to your future income? Are you required to pay for mortgage insurance? For refinancing, what is the new rate and what are the closing costs?
I just hate having debt personally. I want to be free of the pressure that losing my job could lead to me losing my house. And yes, technically with property taxes that can still happen after the house is paid off, but that is a much longer process.
The point was you don't get a mortgage for the savings today. I was using a simple example. The savings tomorrow make the loan interest repayment worthwhile. There are many factors to be considered.
Really, doesn't even take long. When I bought my first place here in Los Angeles, the mortgage was 2.6k, rent 2.2k for comparable places.
Then boom, somehow it's 3.2k rent now and I'm paying 2.6k four years later. That's fucked up, of course, but that's how it works.
They're saying your interest payments may feel like much today, but because the currency devalues over time/inflation, it remaining constant will end up being cheaper in the long run.
Economics is stupid.
Economics is fine. Finance is stupid.
both
Economics is just the study of how production happens. Some economic models and theories suck, but it can't "suck" any more than biology or physics.
Finance is the man-made bullshit.
because it is not made for poors
Today a 30 year fixed at 6.48% for 400k with 80k down payment is $2,400 / month with insurance and property taxes, but let's just say 2,500. That currently will rent a nice 3 bedroom apartment in mid sized metropolitan areas. In 30 years the mortgage might be 3,000. What would a 3 bedroom apartment be renting for? 30 years ago it was 1,200 ish. So 30 years from now, 5,000 for that apartment?
Mortgages make sense for the long term, not just equity (house value goes up) but stability in your monthly housing budget.
That mortgage will end up costing 862k, not 400k. But let's be clear, 6.5% interest is horrendous, you can get a lower rate sometime in the next decade. This plan makes even more sense if the money you save as the years roll by you invest in retirement instead of getting a boat, motorcycle, or avocado toast.
Not to mention that hopefully your salary also increases so you can pay to capital if the interest rate is higher than what you can get is you invest it
Motorcycles don't have to be expensive. Buy used, repair/maintain yourself and it's not bad
I don't know how it works in the US but here you remortgage every 5 years with a new interest rate, and as we head into a bad recession, those rates are going to get insanely cheap
Re financing comes with fees and doesn't make sense to do often. They hide the fees into the new mortgage. Banks don't lower your costs for funsies.
I'm on floating mortgage so I don't think I'm affected - floating just follows the prime interest rate of the BoC + 1.5% or something
Gambling to go with floating but to me its a no brainer that rates will get cheaper
There are many options that make the whole thing more complicated. For demonstration a 30 year fixed is easiest.
this is what renter's union does to people