Good to know thanks

Is there any downside to a 15 year other than the higher note?

I've heard some people say that you should always go with the 30 year because you can pay off early if you want

Can you not pay off the 15 year?

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Posted by C

Houston

Member since Dec 2007

27845 posts

Posted on 2/22/13 at 3:13 pm to Powerman

Yes you can pay off almost any loan early without penalty. The 15 year as a lower interest rate so if you intend to make more principle payments go with that.

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Posted by AutoYes_Clown

Baton Rouge, LA

Member since Oct 2012

5189 posts

Posted on 2/22/13 at 3:50 pm to Powerman

I spoke with broker last week about this. I was surprised at how little the rate advantage of 15yr vs 30yr for me. Because of this, we are going to go with a 30yr but plan on paying 41% more per month (close to what the 15yr min is). For the sale price and down we are looking at, it would be a 17yr payoff. Not as good of a rate as 15yr but we have option of lowering payment in case wife wants to stay at home, we have life changing event, etc

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Posted by NaturalBeam

Member since Sep 2007

14544 posts

Posted on 2/22/13 at 4:46 pm to Powerman

quote:
I've heard some people say that you should always go with the 30 year because you can pay off early if you want Can you not pay off the 15 year?

you can. What they're referring to is if you get into a financial bind and can't make the 15-yr note payments which are higher. They're saying take a 30-yr note, then pay it as if its a 15, but allowing yourself the ability to pull back if you get in a crunch. If you can pay even extra on top of the 15-yr note, more power to you.

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