30 vs. 50 is definitely meaningful to the common person because you build about 15% equity after 10 years with a 30y vs. almost nothing with a 50y.
If your argument is that the common person is too dumb to care about this, then yeah you could say it's not meaningful. But the only way this doesn't kneecap them financially is if housing prices keep appreciating like a rocket forever. When that ends, the line to pay the piper will be LONG.
You're right, I hadn't even considered the equity angle. That does make it considerably worse.
But yes I do think most people are too dumb to think about this, though not because of their own retardation but because it has gotten so complicated (by design) that the common man couldn't realistically be expected to understand it all.
30 vs. 50 is definitely meaningful to the common person because you build about 15% equity after 10 years with a 30y vs. almost nothing with a 50y.
If your argument is that the common person is too dumb to care about this, then yeah you could say it's not meaningful. But the only way this doesn't kneecap them financially is if housing prices keep appreciating like a rocket forever. When that ends, the line to pay the piper will be LONG.
You're right, I hadn't even considered the equity angle. That does make it considerably worse.
But yes I do think most people are too dumb to think about this, though not because of their own retardation but because it has gotten so complicated (by design) that the common man couldn't realistically be expected to understand it all.