Yeah, not sure what's wrong with a 30-year mortgage. You can always pay it like a 15 if you want. Or just invest the extra cash you save every month. If you get more than a 3.5% return, you're making more money than you would save with a 15-year note.
30 years * 12 months * $1,287 monthly payment I've just always heard 30 year mortgages are money pits. I have no evidence to back that up, just advice I've received.
You can't include property tax and insurance in your calculation, just principal and interest if you're trying to compare 15yr vs 30yr.
houses in general are a money pit, especially after a couple of decades. but a having a 30 year mortgage which equates to a lower monthly commitment compared to a 15 year is the way to go. like others have said, you can pay more and make it like a 15 year mortgage. this also provides you some leeway should you lose part or all of your income.
Locking in a payment for 30 years isn't that bad....what was $1000 in 1982? What is it today? You'd be living like a king and paying like a normal guy today
wow...can't believe i didn't make that connection. OP, you're nowhere close to buying a house that you can afford.
Yea, really. Buy only what you can afford. Your monthly rent/mortgage should not be more than 25% of your monthly take home pay. Also, I'd really recommend a 15 year note. Always consider risk when talking finances. It's always better to be debt free faster. If you wake up in 15yrs unemployed..wouldn't you rather have no mortgage than 10yrs left on a mortgage?
But if you wake up in 5 years unemployed would you rather have the monthly payment of a 30 year note or one that's nearly twice as much?
