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by arcticbull 1758 days ago
On a 30 year fixed mortgage what else matters? That’s your monthly payment. Taxes I guess?

Depends how long you’re planning to save. You can hold treasuries or risk parity adjusted pairings. Or CDs ladders. Lots of stuff!

2 comments

As above, the same reasons why it’s bad to think of a car purchase purely in terms of the monthly payment.

> Depends how long you’re planning to save. You can hold treasuries or risk parity adjusted pairings. Or CDs ladders. Lots of stuff!

You don’t know how long the search for a home will take. That’s the point.

>> Also, “don’t worry, just look at the monthly payment” is something that should only ever be said by a car salesman.

> On a 30 year fixed mortgage what else matters?

I think the general criticism regarding monthly payments is more targeted at products like interest-only mortgages, which were hot in the early oughts. Those aren't as common these days. Maybe some people have 10/1 ARMs and similar in mind, but that's a stretch. (Anyhow, today the spreads between ARMs and 30-year are ridiculously small.)