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    What is better 15-Year vs. 30-Year Fixed Mortgages

    Just curious what people think...



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    Re: What is better 15-Year vs. 30-Year Fixed Mortgages

    Depends on what you mean by "better."

    If you can afford a 15 year mortgage there is substantial savings. That is unless you are disciplined enough to invest the difference between the 30 and 15.


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    Re: What is better 15-Year vs. 30-Year Fixed Mortgages

    What can you afford and how long do you want to stay in the house.

    Answer those two questions first.

    Fwiw...I was 8 yrs in to a 30 yr fixed when I refinanced to a 15 yr fixed. My payment increased only $80.

    In my situation the 15 yr is better. I'm stoked to have my house paid off in 14 yrs.


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    Re: What is better 15-Year vs. 30-Year Fixed Mortgages

    at the kind of interest rate you can probably get right now the savings from a 15-year versus a 30-year won't be all that huge. You'll probably save just a few thousand dollars over the life of the loan. On the other hand, a few thousand dollars is nothing to sneeze at-it all comes down to what you can afford/want to pay each month.



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    Re: What is better 15-Year vs. 30-Year Fixed Mortgages

    The fewer the years the better. Yes, people will say that the rates are so low that you can do other things with the money but it doesn't always work this way. If you would have invested money 10 years ago instead of putting extra towards principal you'd most likely lose money. I've also never met anyone unhappy about paying off their mortgage early.

    If you can't afford the house with a 15 year loan than you probably shouldn't be buying the house IMO. Kind of like having a 6 year car loan. To be honest, I started out with a 30 year on our first house but looking back I should have done a 15 year loan.


    Last edited by dmclone; 11-07-2011 at 07:09 PM.

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    Re: What is better 15-Year vs. 30-Year Fixed Mortgages

    15 year, never sign a 30. Go for a 15 pay a little bit extra each month and you will have it paid off in 10 years. That will be one of the happiest days of your life.


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    Re: What is better 15-Year vs. 30-Year Fixed Mortgages

    The term does matter.

    200K loan
    4.75%
    30 years
    $175K in interest

    200K loan
    4.75%
    15 years
    $80K in interest



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    Re: What is better 15-Year vs. 30-Year Fixed Mortgages

    Quote Originally Posted by mbbone View Post
    at the kind of interest rate you can probably get right now the savings from a 15-year versus a 30-year won't be all that huge. You'll probably save just a few thousand dollars over the life of the loan. On the other hand, a few thousand dollars is nothing to sneeze at-it all comes down to what you can afford/want to pay each month.
    Not true. If you are looking at a 150k house, you will save around 50k over the life of the loan if you go with a 15 year rather than a 30 year...even with rates being so low



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    Re: What is better 15-Year vs. 30-Year Fixed Mortgages

    Quote Originally Posted by dmclone View Post
    The term does matter.

    200K loan
    4.75%
    30 years
    $175K in interest

    200K loan
    4.75%
    15 years
    $80K in interest
    What he said.



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    Re: What is better 15-Year vs. 30-Year Fixed Mortgages

    How about trying a 20 year, most people can't afford a 15 year, and most people don't want a 30 year.



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    Re: What is better 15-Year vs. 30-Year Fixed Mortgages

    Quote Originally Posted by DollaDollaBill View Post
    What he said.

    A 15 year generally has a lower interest rate. Usually about .5%. The lower rate should drive your decision.



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    Re: What is better 15-Year vs. 30-Year Fixed Mortgages

    If you make 1 extra payment a year on a 30 year morgage you will pay the 30 year off in 15 don't ask me how it works I have a banker friend that told me that. Of course if you did that on a 15 well then it would be sooner as well.



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    Re: What is better 15-Year vs. 30-Year Fixed Mortgages

    Quote Originally Posted by DollaDollaBill View Post
    Not true. If you are looking at a 150k house, you will save around 50k over the life of the loan if you go with a 15 year rather than a 30 year...even with rates being so low
    see this is what I get for blindly repeating something someone told me a couple days ago without doing any math. Kudos to you, sir.



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    Re: What is better 15-Year vs. 30-Year Fixed Mortgages

    I'm only looking to stay in the house for 6-8 years.



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    Re: What is better 15-Year vs. 30-Year Fixed Mortgages

    Quote Originally Posted by mbbone View Post
    at the kind of interest rate you can probably get right now the savings from a 15-year versus a 30-year won't be all that huge. You'll probably save just a few thousand dollars over the life of the loan. On the other hand, a few thousand dollars is nothing to sneeze at-it all comes down to what you can afford/want to pay each month.
    You lose a little bit in the interest rate, but there is nothing stopping a person from paying off a 30 year loan in 15 years.



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