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Started By
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re: 30,20 or 15 year mortage?
Posted on 2/2/10 at 7:40 pm to Kim Jong Ir
Posted on 2/2/10 at 7:40 pm to Kim Jong Ir
quote:
Then this is absolutely the way to go.
meh
2
Posted on 2/2/10 at 7:40 pm to The Goon
quote:
Most of the principal gets paid off at the end of the mortgage. Therefore you still have a tax advantage for the first 8 years and then depreciating rapidly after that.
This.
Posted on 2/2/10 at 7:41 pm to The Goon
quote:Sound advice.
Most of the principal gets paid off at the end of the mortgage. Therefore you still have a tax advantage for the first 8 years and then depreciating rapidly after that.
Posted on 2/2/10 at 7:41 pm to meauxjeaux2
quote:
$135,000.00 home,$50,000 down.
4.35 on the 15 and 4.75 on the 30.
15 year mortgage @ 4.35% = $115,874.47
30 year mortgage @ 4.75% = $159,624.08
You save $43,749.61 and 15 years
Posted on 2/2/10 at 7:42 pm to bryso
quote:
meh
Right, who cares about the incredible interest savings and quick payoff?
Posted on 2/2/10 at 7:42 pm to bryso
quote:
bryso
I understand what you are saying...basically taking into account opportunity cost.
But you are also assuming that he will be able to invest, earning at a greater rate than a 4.35%+ (I don't want to do anymore calculations, but you are assuming you can actually earn greater than the interest payments in investment)
Posted on 2/2/10 at 7:43 pm to 9Fiddy
quote:
9Fiddy
Did you take them back to Present Value so that you compare apples to apples.......
Posted on 2/2/10 at 7:45 pm to lynxcat
quote:This sounds fricking awesome because I have absolutly no idea what this is.
Did you take them back to Present Value so that you compare apples to apples.......
Posted on 2/2/10 at 7:46 pm to meauxjeaux2
The correct answer is do the 15-yr and this thread is fricking OVA!!!
shite, you're only financing $85K. That's a fricking Mercedes, not a home mortgage.
If you finance $85K over 30 years, you're either broke or retarded.
shite, you're only financing $85K. That's a fricking Mercedes, not a home mortgage.
If you finance $85K over 30 years, you're either broke or retarded.
Posted on 2/2/10 at 7:46 pm to lynxcat
Nah, just simple mortgage calculator with the loan amount of $85K, the interest rate, and the terms. That did not include the prop tax or the PMI
This post was edited on 2/2/10 at 7:48 pm
Posted on 2/2/10 at 7:46 pm to meauxjeaux2
quote:
This sounds fricking awesome because I have absolutly no idea what this is.
I'll go find my financial calculator and see what I can figure.
Posted on 2/2/10 at 7:46 pm to Kim Jong Ir
quote:
Right, who cares about the incredible interest savings and quick payoff?
what if he takes the $ difference in payments and invests it.... just sayin.
Posted on 2/2/10 at 7:46 pm to 9Fiddy
The spread in the interest rates is something to consider.
You may want to take a 30 year note and make sure you don't have pre-payment penalties. That way you can pay as if it is a 15 year mortgage and get the benefit of paying the loan off early. But you keep the flexibility of adjusting to the required payment based on the 30 year note if something comes up (job loss, a kid, etc.).
Also, if you believe there is a chance that the US govt is going to print a ton of money resulting inflation (sooner or later it always has), having US denominated debt is not a bad thing.
You may want to take a 30 year note and make sure you don't have pre-payment penalties. That way you can pay as if it is a 15 year mortgage and get the benefit of paying the loan off early. But you keep the flexibility of adjusting to the required payment based on the 30 year note if something comes up (job loss, a kid, etc.).
Also, if you believe there is a chance that the US govt is going to print a ton of money resulting inflation (sooner or later it always has), having US denominated debt is not a bad thing.
This post was edited on 2/2/10 at 7:47 pm
Posted on 2/2/10 at 7:47 pm to lectric eye
What lectric says is exactly what I would recommend. Great recommendation.
Posted on 2/2/10 at 7:49 pm to lynxcat
quote:
assuming
gotta do that on a day to day basis.
Posted on 2/2/10 at 7:49 pm to bryso
quote:
what if he takes the $ difference in payments and invests it.... just sayin.
This assumes he is ok with more risk is his life; Even if he could invest in T-bills (which he cannot given they are basically paying no interest) and technically make more on the back end than doing a 15 year mortgage, is adds some complexity that he may not see worth it.
In principle though, you could be correct. I'd have to run a lot of numbers to figure it out.
Posted on 2/2/10 at 7:49 pm to lectric eye
quote:Hence bringing my delima to the OT.
You may want to take a 30 year note and make sure you don't have pre-payment penalties. That way you can pay as if it is a 15 year mortgage and get the benefit of paying the loan off early. But you keep the flexibility of adjusting to the required payment based on the 30 year note if something comes up (job loss, a kid, etc.).
Also, if you believe there is a chance that the US govt is going to print a ton of money resulting inflation (sooner or later it always has), having US denominated debt is not a bad thing.
Some of y'all are wicked brilliant.
Posted on 2/2/10 at 7:49 pm to Luke4LSU
quote:
If you finance $85K over 30 years, you're either broke or retarded.
what if it is at 0%?
you're the retarded one.
Posted on 2/2/10 at 7:51 pm to lynxcat
quote:
In principle though, you could be correct. I'd have to run a lot of numbers to figure it out.
and assume a lot... but i am just sayin...
Posted on 2/2/10 at 7:51 pm to lectric eye
quote:
The spread in the interest rates is something to consider.
You may want to take a 30 year note and make sure you don't have pre-payment penalties. That way you can pay as if it is a 15 year mortgage and get the benefit of paying the loan off early. But you keep the flexibility of adjusting to the required payment based on the 30 year note if something comes up (job loss, a kid, etc.).
Also, if you believe there is a chance that the US govt is going to print a ton of money resulting inflation (sooner or later it always has), having US denominated debt is not a bad thing.
Very good points.
You really need a financial advisor to sit down with you to go through all the pros and cons. It is hard for everyone on this board to have the necessary information to give you the "right" decision.
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