Originally Published at The Motley Fool

Given that virtually 100 out of 100 people who take a 30 FRM believe they are going to actually financially benefit enough to overcome the premium they pay… yet 19 out of 20 fail to do so… the numbers suggest the lion’s share do, in fact, believe they’ll be in the house for the long term.

Can’t win the lottery if you don’t give away your money to the teller ;~)

ALL THAT SAID… there definitely *ARE* people who have statistics on their side for outlasting the premium breakeven hurdle on a 30 FRM;
A) Those planning to hold the property as a rental,
B) Those who can already afford to pay off the loan,
C) Those who are at (or nearing) career retirement and have no need or desire to downsize.

LASTLY; It is not WRONG to make a major financial decision with emotional reasoning rather than cold numbers… just be honest with yourself about it. Its far more powerful that way.

David Donhoff
Senior Leverage Planner

Phone 425-223-4520
Email David@NoBullFinancial.com
Web www.NoBullFinancial.com
WA MB# 510-MB-26336

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