Quote:
Originally Posted by InDebtInDC
I also disagree. Inflation in 15+ years will tend to help diminish the value of the fixed payment.
Also, if your house gets destroyed, you risk losing more equity with a 15-year mortgage as compared to a 30-year.
My high school teacher in 1995 was paying $250 a month on her 30 year mortgage that she closed in the 70s. When she signed her loan, the payment was a significant portion of her salary. In 1995, her fixed payment amounted to less than 10% of her salary.
I also strongly agree with disneysteve on being flexible with payments on a 30-year and prepaying, as opposed to being fixed to a high payment under a 15-year.
Would you rather a) own your home and have no money, or b) be homeless but have several hundred thousand dollars?
Personally, I choose (b), although I think I would get robbed rather quickly with that much cash living under a bridge  |
why would you lose more money if your home was destroyed I have insurance ,if my home is destroyed I own the land outright and am insured for the cost to rebuild?
our first house payment was 277 a super high amount at the time, within a few years all our neighbors were paying 400 dollars a month in rent
so time does seem to be on your side to "lower" your payments if you keep a long for the long haul