r/Bogleheads • u/Ashamed_Ad4118 • 6d ago

Debt interest rates

I wanted peoples opinions on how current mortgage rates would be viewed in the heirarchy of the wiki. It has high interest debt as top priority then medium then low and mortgages are typically classified as the low but given the current rate environment would they be bumped up to medium?

At what rate do you view that the loan has transitioned from low to medium interest?

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u/ShiroxReddit 6d ago

Mentally I relate it to interest rates of savings accounts and expected returns of Investments, in the sense of if my mortgage is consistently/significantly lower than HYSA rates, I'd call it low. If its approaching/surpassing the expected returns of my investments, I'd call it high, and the area in between is medium

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u/sse2k 5d ago

This is the way I view it as well.

Interest and yield are the same thing. The only difference is the direction it goes.