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To: RockinRight

15 year mortgages make much more sense than 30s.


66 posted on 08/21/2007 9:12:52 AM PDT by GovernmentShrinker
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To: GovernmentShrinker

It depends.


70 posted on 08/21/2007 9:16:11 AM PDT by RockinRight (Fred Thompson once set fire to a crowd of liberals simply by puffing his cigar and staring real hard)
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To: GovernmentShrinker

Why? Just because of the lower interest rate? Can’t you just get a 30-year, take the extra money you were paying per month on the 15-year, invest it, and be money ahead? (I have a 15-year mortgage, so I’m wondering if you can justify my decision!)


72 posted on 08/21/2007 9:19:30 AM PDT by dinoparty
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To: GovernmentShrinker
15 year mortgages make much more sense than 30s.

I have always heard this and have always disagreed with it on a variety of levels.

Leaving out tax deduction issues because everyones is wildly different, one particular reason is that if you pay off a 30 year fixed in 15 years or less, you will have ended up paying a lower effective interest rate than if you started with a 15. You will also have paid out less in actual hard money.

And because the future is unknown, the 30s term provides you with a saftey net of lower payments if the need arises to have to scale back your advanced principle payments because of unforseen financial obligations, loss of some income, etc...

With a straight 15 from the beginning, you have none of these benefits at your disposal.

116 posted on 08/21/2007 11:09:22 AM PDT by Phantom Lord (Fall on to your knees for the Phantom Lord)
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