90% of Homeowners Do This... (Avoid)

90% of Homeowners Do This... (Avoid)

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[emilybuck]

You can always pay more on 30. You can’t pay less on a 15 !

[jeffkeenan]

I never understood the 30 vs 15 discussion. 15 year mortgages are generally for people who have significant income. The argument shouldn’t be 30 vs 15, it should be 30 vs rent.

[shifteeninjee]

There is nothing wrong with a 30 year mortgage when starting out - lower monthly is a plus and it gets you into a house. That being said - as you grow in your career and can afford it - move to a 15 year as quick as you can.

[jerryturner]

You will always have up and downs in life. Get your house payment as low as you can incase you go through hard times. You can always pay extra when you are doing well

[joshs]

I bought my house in 2003 and did a 30 year. I over pay the principal almost all of the time but I am glad I chose 30 instead of 15 when the 2008 recession hit and I was only working 12 hours a week. That allowed me to keep my house without refinancing soooo...

[nharris]

I love my 30-year 2.25 fixed. And if/when I have extra money that I could have put towards a larger 15-year payment I'm happy to invest that and make well over 2.25. Plus I get to write off the majority of the interest.

[ChrisVaupel-ebue]

I’ve always done a 30 year mortgage, because it lowers my payments. When times are good, I pay more, when times are bad I pay the required. I’ve always paid my mortgage off way before it was due. You just have to have the discipline to make the extra payments.

[ghfan]

I’d rather be able to buy a house now with a 30 year than have to wait another 3-5 years. If your income goes up enough to afford the 15 year, that’s great. You can refinance or just make extra payments. But if you waited to buy the house at all because you couldn’t afford the 15 year, the house price will be much higher and you may not be able to catch up.

[alfredochofre]

I chose a 30 years mortgage an paid it off in 14 years

[gztxypv]

I"m 45 and having to extend back to 30 years to afford the mortgage. It's either that or lose the family home.

I can always over pay later, but remember in 20 years my mortgage will be much smaller due to inflation so easier to pay off.

Sometimes you have to think about the immediate concern.

[SigP]

I just looked up what a 15-year mortgage would be on one of the cheaper homes for sale in my area (not a nice home or nice area by the way). With a down payment of 20%, which would be $82k, The mortgage would be over 3k a month. Yeah, I think I'll be saving up for the next 15 years to try and afford that 30-year loan . . .

[lemmdus]

Actually getting a 30 year mortgage then double the amount you pay in principal every month is a great way to pay off your mortgage quickly.

[donnawestbrook]

Is it that someone could afford a 15 year mortgage and just decided to pay for longer with higher interest though? Having worked in both real estate and mortgage offices, I think it's what they can afford at the time. Especially for first time buyers, it can be tight to buy at all, with programs like USDA rural development no money down and 30 year notes making it possible.

[RiSkyNick]

@RachelCruze what's wrong with having a 30 yr. mort. and make payments like it's a 15yr? That way when life happens you can temporarily pay the lower amount? And life does happen. A car breaks down, a roof gets damaged, someone gets laid off, a kid breaks his arm...For some of us, these events are too costly to a household, and the budget needs to be pulled back for a time.

[wyudxxq]

We got a 30 year mortgage and asked the lender to give us amortization schedule for 15 years as well if we were to get it today.

We them followed the payment amount for 15 years making extra money go towards principal.

We also paid an extra payment each year and finally got it all paid off in 12 years.

We had the option of turning to 30 year amortization payment if things got tough so we thought doing it this way was a win-win.

[Me]

I got a 10/1 ARM loan when I got my house with 10% down and no PMI as part of a first time homeowners program. With minimum payments, it pays off over 30 years but the rate was fixed at 3.5% for the first 10 years. I ended up paying it off just shy of 7 years, so I won't have to experience the rate change at all. All in all a pretty good deal.

[karinhart]

40+ years ago when interest rates were 20+%, then 18.5%, I felt lucky to get a 12.5% FHA mortgage for 30 years. Then I saved like crazy to get a 15 year loan when I refinanced a few years later at 8%. Then I paid that off after 10 years. If you can’t do 15 to start with and can get a 30 year loan without prepayment penalty paying extra on the principal every month is an alternative.

[luze]

Yes. But 30 year is a smaller payment every month vs 15 year. Most people can only afford a 30 year mortgage

[DaveM-FFB]

Most people move and sell their house within several years, so . . First time home owners usually need a 30 year mortgage to qualify. The next home purchase could have a 15 or 20 year mortgage.

[Generichumanzie]

I can’t find comfort in the fact that i cannot afford a home while making 100k