![]() |
|
View Poll Results: 8 v 25 | |||
H |
![]() ![]() ![]() ![]() |
20 | 37.04% |
Y |
![]() ![]() ![]() ![]() |
34 | 62.96% |
Voters: 54. You may not vote on this poll |
![]() |
|
Thread Tools | Display Modes |
#1
|
|||
|
|||
![]()
You expect to live in the house for 30 years. Assume you can afford the payments on either a 15 year or 30 year mortgage and the rates are as follows:
15 year 5.00% 30 year 5.50% Please comment on why you made the selection you did. I'd also appreciate any recommendations on banks or mortgage companies. Pinlifter |
#2
|
|||
|
|||
![]()
15 years at 5% will cost you significantly less.
If you plan on keeping the house either way, the answer is obvious. Loan: $200,000. Term: 30 years. Interest: 5.5% Total interst paid: $208,808.08 Loan: $200,000 Term: 15 years. Interest: 5.0% Total interest paid: $84,685.71 |
#3
|
|||
|
|||
![]()
[ QUOTE ]
15 years at 5% will cost you significantly less. If you plan on keeping the house either way, the answer is obvious. [/ QUOTE ] Heres my thought on it. If I make extra principal payments each month so that I pay the 30 year mortgage off in 15 years the extra .5% would cost me about $9K over the 15 years. Now suppose I do this for a number of years and interest rates have increased significantly. I may no longer wish to make the extra principal payments and instead invest that money elsewhere. Pinlifter |
![]() |
|
|