Not saying the 15 yr mortgages are good or bad, but just something to keep in mind.
Example:
150,000 home
15 yrs
rough monthly payment = 1265
interest paid = 77,800
150,000 home
30 yrs
rough monthly payment = 900
interest paid = 173,000
There are two ways to think about this. Do you want to shell out an extra 365 dollars every month and forego having cash on hand? Or do you want to spend extra to avoid paying a large amount of interest?
I'm one of those that will always do a 30 year (when that point comes). Why? I'd value having an extra $365 in savings every month. Over $4000 extra per year in savings, invested wisely, should balloon to around $70000 after 15 years. So basically, you have to pay $25000 more in interest, BUT you still get to have cash on hand in the event of an emergency, unemployment, etc...Also, correct me if I'm wrong...but isn't home mortgage interest tax deductible? There are MANY believers in going the 30 yr route...simply because, second to student loans, home loans are about the cheapest money you can get.
With that said, if your job is something you feel secure in...that you won't have problem finding new employment if you were to be laid off/quit...you have substantial income to still have enough of a savings account to shoulder unforseen emergencies...go for the 15.
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