Abstract
Better financial results accrue to some borrowers when they select a 30-year mortgage coupled with a simultaneous investment plan rather than a 15-year mortgage term and a subsequent investment plan. These results are particularly applicable in a low mortgage rate environment; however, for the vast majority of borrowers, there remains a significant probability that the 30-year mortgage is the better mortgage product even in higher mortgage rate scenarios. Further, the financial benefit associated with a 30-year mortgage increases as the borrower's marginal tax rate and risk tolerance increase.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 14-21 |
| Number of pages | 8 |
| Journal | Journal of Financial Counseling and Planning |
| Volume | 17 |
| Issue number | 1 |
| State | Published - Jan 1 2006 |
Keywords
- Debt planning
- Home mortgage
- Retirement
- Retirement planning
ASJC Scopus subject areas
- Finance
- Economics and Econometrics