| Welcome to The New Coffee Room. We hope you enjoy your visit. You're currently viewing our forum as a guest. This means you are limited to certain areas of the board and there are some features you can't use. If you join our community, you'll be able to access member-only sections, and use many member-only features such as customizing your profile, sending personal messages, and voting in polls. Registration is simple, fast, and completely free. Join our community! If you're already a member please log in to your account to access all of our features: |
| Mortgage Question? | |
|---|---|
| Tweet Topic Started: Mar 7 2008, 04:27 PM (115 Views) | |
| Luke's Dad | Mar 7 2008, 04:27 PM Post #1 |
![]()
Emperor Pengin
|
M&M's and I are about 12-18 months out from buying a house. We're doing as much research as we can, and I need your guys opinions on something. Generally speaking, is it better to purchase on a 20 year fixed mortgage with higher payments, or a 30 year fixed mortgage but doubling up on your payments? |
| The problem with having an open mind is that people keep trying to put things in it. | |
![]() |
|
| Jolly | Mar 7 2008, 04:34 PM Post #2 |
![]()
Geaux Tigers!
|
It's been my experience that the road to Hell is paved with good intentions... A lot depends on how much of a stretch that 20 year note would be, vs the 30 year note. The problem with doubling up (and you don't have to do that, it works out to a good bit less) is something else always comes up... |
| The main obstacle to a stable and just world order is the United States.- George Soros | |
![]() |
|
| kluurs | Mar 7 2008, 04:36 PM Post #3 |
![]()
Fulla-Carp
|
are you getting a break on the interest with the 20 year? I got a break with a 15 year mortgage - and went to the every other week payment scheme so that it actually will be paid off much sooner. OTH, now I really don't want to pay it off that much sooner - because I have a 4.375% interest rate - locked in.... |
![]() |
|
| kenny | Mar 7 2008, 07:35 PM Post #4 |
|
HOLY CARP!!!
|
Yes you should/will get a lower interest rate with a shorter term. But you are obligating yourself to that higher payment. If you want the flexibility of the lower payment (but just want to pay extra most months) then go with a longer term at the higher interest rate. This is groovy because if you get laid off or something you can make a lower payment each month. I think another thing you can do to end up paying less interest in the long run is instead of paying, say $1500 a month, pay $750 twice a month. I don't think that all banks allow this but if they do you end up saving thousands of bucks over the life of the loan. |
![]() |
|
| justme | Mar 7 2008, 08:08 PM Post #5 |
|
HOLY CARP!!!
|
15 year-fixed. LD, call Mark on his cell phone if you want advice. I'll send it through a PM. He'll be fair, honest and objective with you. |
|
"Men sway more towards hussies." G-D3 | |
![]() |
|
| JBryan | Mar 7 2008, 08:30 PM Post #6 |
![]()
I am the grey one
|
15 year fixed will save you a ton of interest over a 30 year fixed and the interest rates are always lower. The only question is if you can handle the higher payments. I would try awfully hard to answer "yes". |
|
"Any man who would make an X rated movie should be forced to take his daughter to see it". - John Wayne There is a line we cross when we go from "I will believe it when I see it" to "I will see it when I believe it". Henry II: I marvel at you after all these years. Still like a democratic drawbridge: going down for everybody. Eleanor: At my age there's not much traffic anymore. From The Lion in Winter. | |
![]() |
|
| Mikhailoh | Mar 8 2008, 07:21 AM Post #7 |
|
If you want trouble, find yourself a redhead
|
WOW! YOU ARE A FINANCIAL GOD!!!! No kidding, Kluurs - I thought I was doing well at 5.125 on a 15! ![]() |
|
Once in his life, every man is entitled to fall madly in love with a gorgeous redhead - Lucille Ball | |
![]() |
|
| « Previous Topic · The New Coffee Room · Next Topic » |












6:17 AM Jul 11