10 Additional

[greenskeeper]

That is an interesting theory. If one has enough money to pay double principle per month, wouldn't that person go for 20 yr mortgage vs 30 yr one?

yes I have thought of going with a 15yr vs the 30yr as the interest rate would be lower.

However it is nice to be able to fall back on the lower payment if necessary....for instance, when my wife stayed home with our newborn for a couple months we were on one income for that time.

[disneysteve]

That is an interesting theory. If one has enough money to pay double principle per month, wouldn't that person go for 20 yr mortgage vs 30 yr one?

The longer loan gives you flexibility. If something comes up, like a major car or home repair or big medical bill, you can drop back to the lower payment. You aren't locked into the higher payment.

[Fern]

I dont think it's worthwhile to pay closing costs on my own mortgage with a balance of about $36K, and until very recently, i was unemployed, so i couldn't refinance. So with a 6% mortgage, I've been doubling my monthly payments. I have savings, and no other debt.

[MonkeyMama]

The longer loan gives you flexibility. If something comes up, like a major car or home repair or big medical bill, you can drop back to the lower payment. You aren't locked into the higher payment.

Plus, there is no lower interest rate for a 20-year loan. Not recently, anyway. So, why lock in larger payment without the benefit of a lower interest rate cut? Only if you are the type of person who needs the "forced savings."