Quote:
Originally Posted by LivingAlmostLarge
Why the 15 year can hurt? Get a 30 year fixed, and you can always pay it faster. You can never slow the 15 year fixed.
Well if you lose your job. You will lose your home. Cash is king. Until you own the house 100% it can be foreclosed. So then keep mortgage extra payments so if you are unemployed for 2-3 years then you can pay it off and not worry. So how is prepaying a mortgage over keeping the cash smart?
Read wastrelshow.blogspot.com and her husband was "unemployed" for 3 years from being a high up executive. So she says it can happen. And apparently they almost lost their home.
So if they had kept more cash they could make payments for years. So classic example of his advice of hurting someone. By they way she lives completely debt free now, after working hard to get back out of the tailspin of not having a job for so long.
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What you do seem to get is that if they have a 900 payment on a 30, they would have 900 payment on a 15 year. They are not to pay the house off early until they have a fully funded EF and have 15% going to retirement. Also, Dave recommends that if you are aware of a possible layoff, you should build up more EF.
You have no idea what you are talking about. And by the way, anyone unemployed for three years is loafing.