IMO, this is an oversimplification. You are not accounting for equity; it is not a wash as compared to someone who was paying rent. I agree with your premise of minimizing interest expense, but you have to have a payment you can live with. A 30 year loan can act close to a 15 year loan if one pays extra each month. It is risk aversion. Credit is a tool; just like any other tool used properly you drive the nail. Used improperly and you bang your thumb. Ouch!
You know what I did? I got sick and tired of my fixed mortgage. I traded it in for many 3 and 5 year variables with teaser rates. I then made the same payment as my 30 year fixed. This is in accord with your point of minimizing interest expense.
I also put every bonus, tax return, etc into the loan balance. I drove used strippie Toyota pickups while the parking lot was full of drop dead gorgeous Beemers. That's how I paid off my home.
We are on the same page, in fact your words are better. "minimizing interest expense"...my long rants about debt is always about interest. The general public really does not understand the implications, hell, its why the banking industry is so flush with cash and why the massive advertising.
You may be interested to know I have had two mortgages in my life when it came to my primary residences. I always paid the slightly higher rate and took out a 30 year mortgage.
I didnt go into this because my posts are long enough and think you can agree most of the general public does not have the discipline to pay off a mortgage 15 years early or even 10 years early.
Much of my (almost all) adult working career I was self employed. I always paid the 30 year mortgage like a 15 year and but took out 30 year mortgages as a safety net should business/businesses experience a downturn I could fall back on the 30 year lower payment. This was actually advice by my accounting firm when I was young and in business for the first time. It made a lot of sense and did this through my adult life.
(When first starting out, I also had private business loan and a private loan on a commercial building, all paid off ahead of time)
Young people I cant fault, they need to be taught this stuff in High School. It drives me nuts because I "feel" for people who get wrapped up in a mess because of borrowing money. They cant see the big picture, what interest really does to the cost of a loan, even a college loan.
I have taught my kids and seem really receptive, one of them really practices what I taught them and very proud, the other very aware.
Any significant loan in their lives I printed out amortization schedules for them, so they could see first hand the true cost of the money they borrow and how by every principle payment on the next line they were shortening the loan term by one month at the end.
My daughter REALLY took this to the next level with her student loans, paid them off in just short of 5 years, put all she had into getting it paid off.
Anyway, the banking cartel and bank lobby would never allow Washington to require the proper education, lets say, replace the last two years of gym class with actual knowledge of finance. Financial independence would crush banking profits. (and yeah, right now I am doing quite well with WFC, as Americans we borrow and spend like its our last day on the earth and like no other nation on earth, banks will jump right into bed with you to lend you money.
SO ends todays rant *LOL* I really am not some horrible person my posts may sound like, I just care about people and boy, corporations have got the human brain figured out for maximum profit.