30 Year Mortgage

[aspeck]

Re: 30 Year Mortgage

T2F, that is the beauty of making the double principle payments - when you can afford it, do it. And when not, don't. If you get paid every other week, there will be 2 months with an extra pay - those are the months you make 2 or 3 principle payments. Or make 1/2 month principle payments - any additional you can put down on the principle will save interest and months at the end!

 

[demsvmejm]

Re: 30 Year Mortgage

The problem with taking the lower payment and doubling up is that most people don't have the discipline to do this. That is why I fought to get a 15yr mortgage. My banker was talkign 30 year variable because the rate was such and such. I said NO, I want 15 year fixed. I had to demand what I wanted. I paid a higher interest rate to get fixed, but lower for the 15yr. I locked in at 5 1/8 knowing that rates would do nothing but go up.<br />We bought our house in '97 for 60K, all we could afford. It's been tight ever since, but we have adjusted our lifestyle with the expectation of the reward when it is paid off.<br /><br />I still think that you should go with the shortest term/highest payment you can afford. The temptation to take on another payment (credit card or car/truck payment) is too great when you have the lower payment.