I chose a 15 year mortgage over 30 and everyone said I was crazy

My realtor and my own brother in Chicago told me to take the 30 year and invest the difference. I locked in a 3.5% rate on a 15 year loan last year, and my payment is $400 higher, but I'll own my place outright before I'm 50. Has anyone else gone against the grain on a big loan like this?

3 comments

3 Comments

miles_fisher1mo ago

That forced savings plan is a huge psychological win people ignore. You're building equity faster without needing the discipline to invest the difference yourself. Getting that mortgage monkey off your back early sounds pretty smart to me.

hugo_cooper431mo ago

Totally agree with you @miles_fisher about the "forced savings plan" being a win. I started paying a little extra on my principal each month, and it's crazy how much it cuts down the loan over time. It just comes right out of my account, so I don't even miss the money. Makes me feel way more in control than trying to save that same cash separately.

murphy.emery1mo ago

Man, I used to be totally against that idea. I figured any extra cash should go into the market for a better return, you know? But seeing the numbers on my own car loan a while back flipped a switch. Watching the total owed drop faster, and knowing the interest just stops sooner, it feels solid in a way a brokerage account number doesn't. It's not flashy, but it's a sure thing. That peace of mind is worth more than I thought.