Quote:
Originally Posted by daveathall
Before I bought (mortgage) my first house, a friend advised me to get the biggest mortgage I could afford and that it would kill me for the first couple of years but it would be worth it.
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My CPA told me to do this and we took his advise. Those first couple years were very lean, but things get better. I now tell my children to do the same and expect lean times until raises and inflation make that "FIXED" rate easier to handle.
Paying off one's mortgage not only frees up funds for other things, including retirement savings, but more importantly psychologically comes with a sense of weight off the shoulders.
Fast forward and just a couple months ago I took out a loan for the first time in decades on an average commuter car rather than pay cash. Why? Arbitrage. The interest rate was lower than what I could make in a safe, guaranteed Tbill.