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Jan 14, 2022
12:16:56pm
Socrates Johnson Truly Addicted User
If you buy on a 15 year mortgage, more than half of your payment is savings
A lot of people don’t save anything other than their house equity. One way to force savings is to buy a bigger house.

If you are disciplined enough to save 10% of your income, then go ahead and do that instead. My experience is most aren’t. If you have a house payment in the 25-30% of gross income range, on a fifteen year mortgage, you are effectively saving 12.5% to 15% of your income just by making your mortgage, and that’s from day one. It gets better. 7 years in it is almost all of your house payment that is savings.

It isn’t for everyone but it works for those who aren’t going to otherwise be disciplined enough to save.
This message has been modified
Originally posted on Jan 14, 2022 at 12:16:56pm
Message modified by Socrates Johnson on Jan 14, 2022 at 12:18:43pm
Socrates Johnson
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jkccoug
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Socrates Johnson
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