re: Wife and I just locked in our first mortgage....

quote:

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This seems to make the most sense.

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From a strictly math perspective, no. Investing the money instead of paying extra principal makes the most sense. This is assuming you can get a higher return than your mortgage interest rate (not even taking into account if you can itemize and the tax deduction for mortgage interest). With the historic low rates, it makes sense to invest the money.

As has been discussed on the money board, personal finances are more than just math as there is a psychological/personal side as well. This is where your above statement does make sense. The one thing to understand is that you will pay more in interest on a 30 year loan (paid off in 15 years) versus a 15 year loan. I highly value the flexibility of money, so I doubt I would ever do a 15 year mortgage. If I had the money to pay cash, I might consider a 5/1 ARM or something similar to ensure lowest rates. The one caveat is that I will not carry a mortgage when I retire even if it doesn't make the most math sense.