5/25 Hey, is it worth wasting an extra $25/month in mortgage interest
to have an extra $200/month in pocket money? (comparing 15 to 30) -nick
\_ _In general_ if you can afford the 15 year, you're better off in
the long run. Talk to a loan person at a bank to go over specifics
for your loan.
\_ Most 30 year loans have pre-pay penalties. Banks prefer to have a
\_ Not from what I've seen. Certainly my 30 year loadn has no
prepayment penalty.
long income stream on paper, that they don't have to modify with
prepayments. If you are able to pay it off in 15 years easily,
go for it!
\_ Some idiots posted below.
\_ YMMV. Lots of people buy houses so that they have LESS spending
money, because when you have lots of extra spending money, you
can easily "blow" a lot of it... either the $500/mo Fry's habit,
nice restaurants, nice whores, clothes, or whatever. If you can
afford a house, you probably are doing somewhat ok, and can live
without the extra $200. On the flipside, money is meant to be spent
so what is the point in saving it all? Find your own balance.
What's your lifestyle? What do you want it to be?
\_ You mean 15 vs. 30 year mortgage? You do realize how much more you'd
pay on the 30 year, right? If you can affort it, you'll accrue
equity much faster with the 15 (because of compound interest, equtity
growth is _not_ linear).
\_ Non-sense. You don't know any better. The fastest way
to build equity is to have a 30-year-loan (hence lower
monthly payment) but pay the same amount each month
month as you would with a 15-year-loan (hence you pay down
more principle each month).
\_ How is this different from getting a real 15-year loan with
the same interest rate? (Not to mention that 15-year loans
usually have lower interest rates than 30-year ones.) -- yuen
\_ Exactly. All that matters is the interest rate.
\_ IANAFA (I am not a financial advisor). Depends on what you want
to do with it. Can you live without it? If not, then go for 30,
of course. If you can, then perhaps putting the $200 in something
that will earn more than your mortgage interest rate will be a
good investment. I would highly advise against just blowing the
$200, but I'm very conservative financially.
\_ In comparing interest, do remember that debt paid is debt
paid whereas investment earnings still has to be taxed. |
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