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To: dinoparty

No, because the total interest you pay on a 30 is massive. The difference in monthly payments isn’t that large, but you only make them for half as long. Plus you build equity a LOT faster with a 15, giving you a big cushion from which to take a home equity loan or cash-out refinance later if you need the money or have a better investment opportunity for it. The debt you’re paying down each month (i.e. the portion of your payment that you’re actually paying to yourself) even in the early years of a 15 is way more than the small reduction in monthly payments you’d be getting with a 15.


108 posted on 08/21/2007 10:09:43 AM PDT by GovernmentShrinker
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To: GovernmentShrinker; dinoparty

My mom and dad got their home on a30 year fixed but paid teh payment of a 15 year. That way they had some wiggle room in the budget.


109 posted on 08/21/2007 10:15:03 AM PDT by Hydroshock ("The Constitution should be taken like mountain whiskey -- undiluted and untaxed." - Sam Ervin)
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