I was talking to my dad about his finances and his retirement plan when he mentioned he still has about another 30 years left on their mortgage. At first I thought he was confused and thought he had 30 years left because that was the total length of the loan. I told him there was no way he had 30 years left because they have been living in the same house for almost 20 years. I then had him login me into his mortgage account and sure enough he somehow has a 52 year mortgage with 30 years left. My question is should I have him pay as much as he possibly can to pay it off quickly or should I continue to let him make the minimum payment? He has no other debt besides the mortgage. His reasoning for only making the minimum payments is that it's a 3% loan and that money is better off earning interest somewhere else. He will be 87 by the time he pays off the house if he continues to make the minimum payments.
Found it here/for the Twitterinos:
I am once again begging Redditors to stop posting Ls:
For some reason this becomes a /r/childfree struggle session:
Folks can't figure out if this is good or not? Idk didnt read:
OP is getting mogged by his dad and its worse when Redditors are saying it:
Edit:
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Why would the bankkk agree to thissss?
An actuarial table somewhere? I bet their (step)mom is significantly younger than pops
Lol at the cute twink who said the value of money is halved every 10-15 years, lol no. Not even with the "let's increase consumption and cuck production" policies of COVID. I guess it would be if we had 10 percent annual inflation. Maybe that dude is an argie.
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Kids pay lol
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They agreed to it in 2004, that should be explanation enough.
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If he was an Argie he would be saying the value of money is halved every 3 to 6 months, and some days, every 3 to 6 hours.
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I'm going to guess that this was actually just a refinance in very late 2022 and the website is showing it in a dumb/weird way. It's showing 345 payments left, which would put the close on the 30 year loan around November 2022.
Edit: Actually that would be too late to get the low rates. It might be a mortgage statement from a year ago.
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I think if it halved every 10 years, that would imply ~7% annual inflation. 15 years obviously implies a lower rate.
The real value is probably closer to halving every 15-25 years, but 15 really isn't an absurd number, corresponding to around 5% annual inflation.
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Usually not that high, though. At least in Burgerland. Average inflation over the last 20 years was like 2.4%
Every 30 years is a better bet.
Annual Rate/Percentage Change
2022 8.00% 3.30%
2021 4.70% 3.46%
2020 1.23% -0.58%
2019 1.81% -0.63%
2018 2.44% 0.31%
2017 2.13% 0.87%
2016 1.26% 1.14%
2015 0.12% -1.50%
2014 1.62% 0.16%
2013 1.46% -0.60%
2012 2.07% -1.09%
2011 3.16% 1.52%
2010 1.64% 2.00%
2009 -0.36% -4.19%
2008 3.84% 0.99%
2007 2.85% -0.37%
2006 3.23% -0.17%
2005 3.39% 0.72%
2004 2.68% 0.41%
2003 2.27% 0.68%
2002 1.59% -1.24%
2001 2.83% -0.55%
2000 3.38% 1.19%
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Sure if you start looking at 2000. Recent inflation has been quite low.
Go back 3 more decades tho and it wasn't always this way. It also doesn't seem like it'll be this way in the near future.
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If you're expecting some kind of economic boom+unlimited gibs+cheap credit and no recessions, I guess.
The targeted rate is 2%. Long term average is 3.1%
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Mortgages before the 2008 kerfuffle was pretty much the Wild West of lending and banks were doing some absolutely insane shit.
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