Home buying is one of the largest decisions a person can make. Buying a home, whether as a single person or a family, is an immense landmark in one’s life. As with most big decisions, getting your first home is a very controversial topic. Namely, the debate comes when it is time to decide how you will pay for it. There are many different ways to go about a mortgage, and the factor we are going to discuss today is term length. Term length has just about the largest effect on the payment on your mortgage, other than the price itself. The two dominant term lengths are 15 years and 30 years. Today, we will hear from prominent YouTube finance expert Graham Stephan, and why he thinks a 30-year mortgage can save you money despite the higher interest rate.
A little background on Graham is important before jumping in here. Graham Stephan is a millennial content creator who started out his quest to success in the real estate business. Still an active real estate agent, he created videos on how to invest wisely and grow wealth at an early age. Despite his focus on 18-35 year olds, his advice is extremely relevant to all age groups. Primarily, his focus is on living far beneath your means to ensure a secure and wealthy future. Now that you know a little bit about him, let’s check out the video:
Graham makes a lot of great points here (In order to abide by fair use guidelines and respect his work, I will not summarize those points). As a man who has made a killing very early on in life in the real estate business, he has legitimate credibility in the field. Let me know what you think about his take, whether you agree or disagree. For the sake of equity in the discussion, next article will be a take by Dave Ramsay, who Graham mentioned in the video, and strongly disagrees with Graham’s sentiment here.