re: Still on the Learning Curve - 30 year mortgage better than 15 year mortgage?

My credit union offered a 20 yr, kind of split the difference between the two. That's what I went with.

The 30yr Fix is the biggest scam by the banks ever

In a 30yr fix the benefit of the loan (paying as much principle as interest) doesnt start till year 12-15

97%of the borrowing public readjust there mortgage every 5-7yrs so they never get the advantages of the loan

They just reammortize themselves.

Have you seen an amortization schedule?
Paying as much in interest sometimes more to borrow principle is a scam

Why is their balloons and confetti around the "30yr Rate of the day" when you walk into a bank

Do you think the Banks dont know these stats?

My favorite is the clients who before the implosion got a 30yr in the 4%. RATES WILL NEVER GET THIS LOW!! Im Never refing again! Is what I was told

Guess who called me when rates got in the 3's? Guess whose calling me again since values have gone up and the kids are going off to school so they need cash and rates are still kinda low?

So now these clients have refied 3 times in 10yrs paid costs, got nowhere and then Neg Am'd themselves by taking cash out

But the Option Arm was the worst of all loans and the reason for the implosion

30yr fix is a Vicious cycle and a scam

Sure, but you can apply that reasoning to nearly every financial product. Used wisely, a 30 yr fixed can be very useful, and often a better choice than a 15 yr (which you would choose to avoid the scenario you laid out).

but for those folks who only plan to be in the home 7-8 years, isnt the 30 year fixed the way to go?

It depends, but by paying the amt due each month, you will certainly have less equity after 7-8 yrs in a 30 yr vs 15.

quote:

---

Not sure I follow. It is that simple. I'm a firm believer that anyone in the US can be "rich". Nobody wants to make the sacrifices to do so.

---

Sacrificing is difficult part, either on the front end of investing or the back end of saving majority of what one has invested.

do what he said

quote:

---

Great if you make it past 8yrs
Thats my point. No one does

Call bull shite all you want but those are facts 97% do it every 5-7yrs captain

---

The fact that we've had sub 5 rates for several years now, will quickly erode whatever "fact" you've think you've found and will provide very little incentive for those looking to refinance in the next 10-15 years, chief.

quote:

---

You obviously didnt follow along

---

It wasn't an easy thing to do.

Declaring the 30 year fixed a "scam" in this current environment is just silly.

It's funny when someone thinks they know everything and try so hard to prove it, but in reality they just make themselves look like a jackass. Don't ever change brah!