View Single Post
  #114 (permalink)  
Old 07-08-2008, 03:41 PM
disneysteve's Avatar
disneysteve disneysteve is online now
$ Saving Guru
 
Join Date: Jun 2006
Location: New Jersey
Posts: 15,583
Points: 95646.30
Donate
Default

Quote:
Originally Posted by noppenbd View Post
Without checking the math, it looks like you probably could have bought the same house with a 15-year loan and stayed within DR's guidelines. So in your case his advice would just be to get the 15-year loan.
Exactly what I thought you'd say. What I didn't mention is that at that time, I also had over $100,000 in student loans which essentially amounted to the equivalent of a mortgage already. Had I taken a 15-year home loan, we could have afforded the higher payment, but it would have meant taking a lot longer to repay the student loans. It would have worked but wasn't how I preferred to do it. My priority was paying off the student loans. I didn't mind paying longer on the house. I figured that once the student loans were gone, I could accelerate the house payments if I chose to. The 30-year loan gave us a lot more flexibility in our cash flow.
__________________
Steve

* Despite the high cost of living, it remains very popular.
* Why should I pay for my daughter's education when she already knows everything?
* There are no shortcuts to anywhere worth going.
Reply With Quote