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If you can afford it then lock in now for 6%, re-finance in 5-10years when interest rates go down.

Assuming rates go down.

That is the good thing about it. If rates to up you're protected, if rates go down you can refinance. Its a great deal for US consumers that other countries dont have.

Yup, I bought a house at 2.7% last year. At current rates, my house would have to be 20% cheaper to keep the same payments. I don't think I'll ever be able to beat the rate so I'm pretty happy. Even if the market explodes and my house drops by 20-50%, it was still a good deal with those interest rates.

OK, assume they don't. Assume they stay the same. Then you've borrowed money at 6% in an 8% inflation environment forever. That's not bad.

Or, assume rates go up. Then you've borrowed money at 6% in a 10 or 12% inflation environment. That's not bad, either.

Personally, I'm not sure that I like "load up on debt" as a strategy, even if it makes sense financially. But it can make sense financially.

Note well: The hidden assumption here is that interest rates track reasonably well with inflation, and also that your income tracks reasonably well with inflation. The first assumption is probably reasonably solid. The second one... your mileage may vary.

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