The way I see it, my mortgage is currently shrinking due to inflation faster than I'm paying interest on it.
Houses are one of the only things you're allowed to take out such large loans on, and with interest rates below 3%, fractional reserve banking is legitimately the only way banks are currently beating inflation through loans, and you basically get to benefit from that by getting a loan that is practically paying YOU interest decreasing in value due to inflation, while you slowly obtain an appreciating asset.
Am I wrong in this thinking? I just can't justify paying off a loan early at my 2.6% rate, it seems far smarter to load the excess into index funds and hold.
Submitted May 09, 2021 at 11:31PM by Ecksters https://ift.tt/2SCShgq
