Quote:
Originally Posted by Steely Dan
^ I like the flexibility of a 30 year.
Yeah, you'll pay a lot more interest if you stick to the minimum monthly payments for all 3 decades of a 30 year, but most 30 year loans let you pre-pay princincipal if you want to, which can get you pretty close to a 15 year if you're disciplined and consistent.
However, on the other side of the coin, a 30 year sure comes in handy when your wife quits her job to start her own business and then you get laid-off and your income drops to zero for a stretch of time.
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I agree with you. And I've said this before but in earthquake country I don't really want to pay off my loan. There's additional "flexibility" in having the bank's capital tied up in my home rather than mine should nature hit us hard. Meanwhile, I get the major benefit of owning rather than renting: Transparent costs way into the future. Nobody's gonna raise my rent . . . ever. They do, however, raise my condo HOA fee and that's now larger than my mortgage payment.