Experienced well-being rises with income, even above $75,000 per year

Re:Experienced well-being rises with income, even above $75,... by sokoloff on Sunday January 24, 2021 @04:15PM (#25896134)

Yes and the interest rates in 1980 were such that the mortgage P&I payments on a 1980 mortgage were $1106 per $100K borrowed vs $422 per $100K @ 3% today.

65K borrowed in 1980 cost $719/mo. 320K borrowed today costs $1349/mo (both are principal and interest only).

$719 in 1980 is $2258 in 2020.

[0] https://fred.stlouisfed.org/series/MORTGAGE30US - I picked 13% as an approximate (somewhat low even) average rate for 1980.

[1] https://www.usinflationcalculator.com/

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Re:Experienced well-being rises with income, even above $75,... by xyzzy123 on Sunday January 24, 2021 @04:57PM (#25896562)

Yeah the "whats my monthly" being about the same doesn't quite capture what's happening though.

Compare what happens when you get a raise or a small windfall and try to pay your mortgage off early.

I'd pick "small amount, high interest" over "massive amount, low rates" if that were an option.

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Re:Experienced well-being rises with income, even above $75,... by sokoloff on Sunday January 24, 2021 @05:03PM (#25896618)

That option requires governments to not be printing massive amounts of money, though.

I am planning to refinance again (back to a 30-year mortgage) and won't be in any hurry whatsoever to pay it off early. Borrowing money at 3% nominal with the (hopeful) prospects of economic growth allowing inflation to return means that I expect/hope to be borrowing that money at negative real rates in the back half of that loan.

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