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13 points paulpauper | 1 comments | | HN request time: 0.201s | source
1. siromega ◴[] No.45555614[source]
Right for the wrong reason.

Are 30y loans bad? Yes.

Is it still ok to buy a home with a 30y loan? Yes.

However, as your career (hopefully) grows and you earn more, plus inflationary aspects of time, eventually you want to be in a spot to refinance your 30y loan into a 15y or 20y one (and hopefully before the half way point!).

I was able to refi a 30y loan about six years into it into a 15y thanks to low Covid rates, and while I only pay a few hundred more per month I went from maybe $6,000 a year in principal and $8,000 in interest to $14,000 a year in principal and $5,000 a year in interest. “Throwing away” a lot less money in interest payments is good for your net worth.