It’s ideal to get a 15 year mortgage, but a 30 year mortgage gets you a bigger better house and it’s better than renting.
It’s ideal to get a 15 year mortgage, but a 30 year mortgage gets you a bigger better house and it’s better than renting.
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Yes, and it’s interesting what a big difference interest makes. I once took a 30 year mortgage, and two years later interest rates dropped but over two points, so I was able to refinance it to 15 years at the same monthly payment.
With Bidenomics and today’s interest rates, these poor young folks are either going to have to over leverage themselves in mortage debt, or settle for an undesirable ‘starter home’. After 2020, a lot of people fled urban and near-urban areas, lowering housing costs, it’s a huge gamble to assume that wont happen again or ignore increases in crime so I think a lot of people are staying/moving home with their parents are sharing the costs and living in groups.
Yes, but the problem is buyers at this level stretching for too big a house and not having enough resilience when things go wrong.
The 30-year route gives you more wiggle room in a downturn.
Best for them is to buy a small home in a stable area.
Maybe you really can't afford a "bigger better house." The problem people have now is living beyond their means. Save your money. You're going to need it sooner than you think.
It’s ideal to get a 15 year mortgage, but a 30 year mortgage gets you a bigger better house and it’s better than renting.
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And just why is it better than renting?
If you have a low income and the furnace goes out what do you do, you put your repair on the credit card. If you buy you also have insurance of two months of house payment or rent payment on average.
Ramsey is correct. Live as cheap as you can until you have enough money to pay cash for a house, fix it up and trade up until you get what you want. It works.
A good option is to get the 30 year then pay more on the principle with the goal of getting it paid down in 15 years, but allowing “wiggle room” in case some months - or years - are tighter financially than others and you could just pay at the 30 year rate those months that you need to.
Occasionally, the interest rate on the longer mortgage is
Lower than the short. In that (rare) instance, the longer mortgage is
Better, if you just pay extra.
Which will cost you more in utilities, upkeep and taxes.
And with space you really don't need but will fill it with things that you really don't use.