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What are people's thoughts about the 15 year mortgage vs. 30 year mortgage. I feel a 30 year mortgage is the biggest scam in the world. First, you are crippled by the mortgage for 30 years just to have lower payments. At, least in 15 years you could be debt free.
Also, how much should I borrow. I want to borrow no more than $100K. I feel mortgage people are just loan shoarks in disguise. Why should I give someone all my money.
I wouldn't call it a joke. There's a lot of people like the OP. At least the OP has identified that he/she has little understanding of finance and has come here to get some answers.
I wouldn't call it a joke. There's a lot of people like the OP. At least the OP has identified that he/she has little understanding of finance and has come here to get some answers.
OP never said they had no knowledge of finance. And if they have little understanding it doesnt make any sense to be thinking this.
Personally, I dont think that getting loaned 100s of thousands of dollars, at an interest rate of around 4pts for 30 years is a scam. Have you ever heard of credit cards, title loans, or pawn shops? They typically have a slightly higher interest rate
I had a 7% 30 yr mtg in 2001, refi'd in 2003 for 4.75 15 yr.....no extra cash taken out. I now have less than 5 years left (extra payments). Best thing I ever did. The $600 difference in the payment was nothing and I essentially cut the mtg in half. In 2003 it was just $600 in extra money, in 2012 it is light at the end of the tunnel!
How are they loan sharks giving you an interest rate lower than the average rate of inflation? I would take the 30 year. Use the money from the lower payments for paying off cars early to funding retirement. Your timing is perfect. Take advantage of it.
I feel mortgage people are just loan shoarks in disguise. Why should I give someone all my money.
Anyone buy a house with just cash?
ggwish, how long will it take you to save up the 100% cost of the house? What will you do for living arrangements in the meantime? If your answer is that you will rent, what is the difference between paying money toward rent and paying interest - except that with ownership, you have the ability to build equity, AND get to lock in the price of the house in today's dollars? You also get to deduct the mortgage interest from your taxes. Every situation is different, but generally buying a house(even if you have to take out a mortgage) would be the wiser choice, as long as you buy within your means.
ggwish, how long will it take you to save up the 100% cost of the house? What will you do for living arrangements in the meantime? If your answer is that you will rent, what is the difference between paying money toward rent and paying interest - except that with ownership, you have the ability to build equity, AND get to lock in the price of the house in today's dollars? You also get to deduct the mortgage interest from your taxes. Every situation is different, but generally buying a house(even if you have to take out a mortgage) would be the wiser choice, as long as you buy within your means.
You could rent b/c you move around a good bit for employment opportunities.
You Could live in corporate apartments, and Airstreams etc while you work long hours (Just knocked off) to save up the cash in 2-3 years.
It's doable, Depending on how much I make here I will have the cash for my 4plex in 2013 or 2014...
Americans are incredibly spoiled. They are in a rush to pay off a mortgage because some fools have them thinking a paid off home is the new American dream, but they overlook how incredibly good a deal a 30 year fixed mortgage at 3.75% is. Its an off the charts great deal, mortgages are incredible deal when you consider how little you have to put down to control a valuable asset. People around the world envy the US home mortgage and yet so many "gurus" tell you the best thing you can do is pay it off as fast as you can. Anyone with a worldview and a little bit of sanity can see how insane it is.
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