T/S
New Member
Cash: $ 1.05
Posts: 5
Joined: 26 Aug 2007
Location: the Original
|
| mortgage question |
 |
|
which is better a 30 year or a 15 year mortgage ?
|
Tue Nov 06, 2007 7:38 am |
|
|
T/S
New Member
Cash: $ 1.05
Posts: 5
Joined: 26 Aug 2007
Location: the Original
|
well cake...duh...
naw but really my thoughts are go with the 15 year and set it up bi-weekly so to pay it off in 10 years...my wife on the other hand thinks 30 and just overpay when we can to pay it off early...
been my experience that ya just never have those "when we cans" so the 15 is better...
|
|
Tue Nov 06, 2007 6:23 pm |
|
|
Apollo
Senior Member
Cash: $ 73.85
Posts: 360
Joined: 10 Sep 2007
Location: New York
|
I agree with coaster, it depends on the individual situation and preferences.
It is just important that you and your wife get on the same team when it comes to the decision.
It is not smart to play it safe but it is safe to play it smart.
|
|
Wed Nov 07, 2007 12:33 pm |
|
|
ukey
Contributing Member
Cash: $ 7.45
Posts: 32
Joined: 02 Nov 2007
Location: Singapore
|
How well can you afford the installment for the 15 year loan? If it takes up too much a chunk of your disposable income, you might want to consider taking up the 30 year loan.
Do you intend to live in it for the long run, or to sell the house when the price is high? if the latter, you might also wanna go for the 30 years.
Do you want to do any other form of investment, or would the house be your only form of "investment"?
these are some questions you may want to ask yourself before deciding..
cheers
|
|
Thu Nov 08, 2007 3:38 pm |
|
|
efflandt
Senior Member
Cash: $ 80.45
Posts: 401
Joined: 25 Apr 2005
Location: Elgin, IL USA
|
I went in between. 3 years into a 30 I refi'd remaining balance at lower fixed rate for 20 yrs with my original lender (only $170.00 closing costs). So my payment only rose $30/mo to shave 7 years off of my loan. At the time, interest for 15 yrs was not much lower. So I figured it was better to have manageable payments and possibly pay it down early than to have higher required payments.
They threw in a free HELOC for the amount of paid principal in case I ever get caught short. The HELOC is is at a higher variable rate, but is tax deductable.
|
|
Fri Nov 09, 2007 3:13 am |
|
|
rockhound
Preferred Member
Cash: $ 26.45
Posts: 132
Joined: 03 Feb 2006
Location: West Virginia
|
| Re: mortgage question |
|
|
quote:
Originally posted by T/S
which is better a 30 year or a 15 year mortgage ?
Yes, it depends on what your goals and situation is. In general, the 30 year mortgage would offer you lower monthly payments, but over the 30 year term, you will pay much, much, much more interest. With the 15 year mortgage, your monthly payment will be a little more, but you'll save money on interest by cutting your term in half. Whichever way you go, you can still make extra payments to the principal to save interest and move yourself forward on the payment schedule to reduce your term length.
Using my own case as an example, I got a 30-year fixed rate mortgage at 7.75% when I bought my house. After about three years, I paid $20,000 on that loan, then refinanced to a 15-year fixed rate mortgage at 5.5%, and paid another $20,000 on that loan. The effect was that I turned my 30 year loan into a de facto 10 year loan, and wiped out an amount of interest, which would have been paid over the 30 years, that was actually greater than the original loan principal.
|
|
Fri Nov 09, 2007 3:23 am |
|
|
gmany
New Member
Cash: $ 1.95
Posts: 9
Joined: 09 Oct 2007
Location: seawa
|
well, for 15-yr mortgage it is obvious that the installments are much higher and if you could afford it then it is worth because, we'll pay far less for 15-yr mortgage over its lifetime comparing to 30yr mortgage.
|
|
Mon Nov 19, 2007 9:13 pm |
|
|
|
