# What is the mindset of middle class people that keep them middle class?

**URL:** <https://boards.straightdope.com/t/what-is-the-mindset-of-middle-class-people-that-keep-them-middle-class/550255>\
**Category:** In My Humble Opinion\
**Created:** [August 14, 2010, 4:26pm UTC](https://boards.straightdope.com/t/what-is-the-mindset-of-middle-class-people-that-keep-them-middle-class/550255 "2010-08-14T16:26:57Z")\
**Posts on this page:** 1\
**Page:** 14

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**Author:** ![Rand\_Rover](https://avatars.discourse-cdn.com/v4/letter/r/db5fbb/32.png) [@Rand\_Rover](https://boards.straightdope.com/u/Rand_Rover)\
**Post date:** [August 25, 2010, 12:41am UTC](https://boards.straightdope.com/t/what-is-the-mindset-of-middle-class-people-that-keep-them-middle-class/550255/261 "2010-08-25T00:41:31Z")

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> [@Hakuna\_Matata](#):
>
> > [@emacknight](#):
> >
> > b) Your payments won’t change. It doesn’t matter how much I put into my mortgage, I still pay the same monthly rate. It would mean I’d pay it off sooner, but in terms of putting $20k into a $100k mortgage, I won’t see that benefit for 25 years (or there abouts).
> 
> I think the one exception I can think of for this is if you have a substantial amount to put down, then you can re-amortize your loan. At least that is my understanding on it and what I plan on doing with the equity in my current home. I just purchased a new home and am in the process of selling my old home. \*\*Once it is sold I have to place those funds somewhere so that I don’t pay captial gains taxes, \*\*and I plan on rolling them into the equity in my new home. According to my banker I can then re-amortize the loan (reducing my monthly payment). I plan on doing this and then continue to pay the old mortgage payment–thus reducing a 15 year note into an 8 year note. For me an 8 year window is acceptable whereas a 30 year window would not be. But I haven’t looked into that too far as I am not sure how long it will take me to sell my old house and it has only been on the market for a week anyways! You looking to buy a house by any chance? 😃

That’s not how it works now (used to work that way, but it’s been a while). Now there’s just an exclusion (I think the amouint is $250k for single people and twice that for married filing jointly). Gain under that amount isn’t taxable whether or not you re-invest, and gain over that amount is taxable even if you re-invest.

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