According to my CPA, we are good. If I’d bought muni’s we wouldn’t be. But good ole’ stocks. its my principal residence. And I didn’t take out the mortgage to buy stock, I took it to buy a second home, then sold the second home and didn’t bother to pay off the mortgage on the primary residence.
In our defense, it came about because we have a truly crazy constitution where the citizens get to vote directly on legislation. It has not exactly been a font of well-reasoned policy.
We’ve stayed at a bed-and-breakfast on the North Shore of Kauai that’s owned by a nice couple who bought it in the wake of Hurricane Iniki in 1992. So buying property in the wake of a natural disaster also pays off.
I have a 15-year mortgage at 3.75%. my very first payment was mostly principal. I put 20% down, most of which was a gift from my in-laws. My house is near a college, so therefore easy to rent. I’d say we made a smart choice.
