Another option that I used is to get a 30 year mortgage and pay it off early by doubling payments. You have some control over the amount of interest paid.
My wife and I faithfully paid an extra $100 each month in principal, and paid our mortgage off in 15 years instead of 30 years.
This.
Sure, the solution is double your mortgage payments. I think I hear people laughing all over the country.
We did the same thing.
we paid our condo off ten years early im so happy we did
“Another option that I used is to get a 30 year mortgage and pay it off early by doubling payments. You have some control over the amount of interest paid.”
My recommendation is 20% down with a 30 yr mortgage, paid every two weeks.
Do not pay what a realtor claims you can afford. Figure out what you can afford and still sleep at night, and then downsize from there.
Do not take out home equity loans for any reason. If you kiddie wants to go to college, then tell them to get a job and start saving.
Lastly, refinance as interest rates drop. (Need to do the math to determine the break even point for the cost of refinancing.)
FYI: We purchased our current house in 1993 for $240,000, 20% down, with a 30 year mortgage at 8.125%. We refinanced in 2012 @ 2.875% for 15 years (and did not refinance more than the balance due). Our monthly payment dropped by ~$900. Although we can easily pay off the balance (~$38K), I don’t see the point because the interest on our Vanguard Money Market Account is nearly twice the interest on the mortgage.
“get a 30 year mortgage and pay it off early by doubling payments.”
We basically did that. On the first house, made two payments a month. One on the loan, and one applied to the principal. After that we were able to pay cash.
For years we lived WAY below our means. It wasn’t fun, but in the big picture it has paid off.
That's what I did. I'm darn close to paying off my house because of it. It also gives you payment flexibility. When You are flush, you pay more. If things get a little tight, lower your payment for a month or two.