Quote:
Originally Posted by mhays
The great thing about a short loan is a large percentage of the payment is principal, i.e. paying yourself. I consider that another form of retirement savings.
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Indeed, but right now the installments are crushing me. I cut everything else, which would not be an option anyway. My credit card is all restaurants and bars, which are down with the pandemia.
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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Me too. I financed my first apartment (outside São Paulo) with a 30-year morgage. It's been running for 4 years, but I've paid off the the last 9 years or so.
However, in this case here in SP, yearly interest rates for 15 years were 1% less than for 30 years. That's the main reason I opted for short-term this time. I knew things would get tight, but Covid made things even worse.