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From: mark@umcp-cs.UUCP (Mark Weiser)
Newsgroups: net.taxes,net.invest
Subject: Re: 15yr vs 30yr mortgages
Message-ID: <320@umcp-cs.UUCP>
Date: Sat, 15-Mar-86 20:00:10 EST
Article-I.D.: umcp-cs.320
Posted: Sat Mar 15 20:00:10 1986
Date-Received: Tue, 18-Mar-86 07:20:33 EST
References: <403@inuxh.UUCP>
Reply-To: mark@maryland.UUCP (Mark Weiser)
Distribution: net
Organization: U of Maryland, Computer Science Dept., College Park, MD
Lines: 23
Xref: watmath net.taxes:1115 net.invest:1217

In article <403@inuxh.UUCP> rdr@inuxh.UUCP writes:
>
>Should you get a 30 year mortgage or a 15 year mortgage?

Wow, this was an impressive amount of information, all accurate so
far as I could tell (I'm no expert).  But it left out the one thing most
missing from most financial advice: intangible state-of-mind.

Some financial advisors claim to take into account the degree of
"risk aversion" of their client, but this can still be turned into
dollars and cents.  What I'm talking about is how *good it feels*
to own your own house free and clear after 15 years, even if you waste
money getting there.  I chose it, and while I attempted to justify
it financially to be sure I wasn't taking too much of a bath, it came
down to how good it felt.

As Herb Simon won the Nobel prize in economics for saying, human beings are
not rational calculators of rewards, we "satisfice" instead.
-mark
-- 
Spoken: Mark Weiser 	ARPA:	mark@maryland	Phone: +1-301-454-7817
CSNet:	mark@umcp-cs 	UUCP:	{seismo,allegra}!umcp-cs!mark
USPS: Computer Science Dept., University of Maryland, College Park, MD 20742