30 year mortgage

[ChessieMom]

Originally Posted by Returning2USA

Or, build equity through appreciation.

30 year mortgages bring a slave-like mentality to people.

No, they don’t.

[ChessieMom]

Originally Posted by Sharpydove

No. Contrary to how some people convince themselves dressing debt in low interest rates makes it “prettier”, debt is bondage.
Who wants to owe money to a bank or anyone during retirement? I once asked a wise, very joyful older friend what was the secret to their contentment at 68. The answer was to make sure your retirement is fully funded.

Nonsense.

[TechGromit]

Originally Posted by PriscillaVanilla

Is it a good idea for someone in their 40s to be taking a 30 year mortgage on a home?

Depends.


Option 1:


Get a 30 year 120k mortgage, at 4.5%, the first month your payment is $597, but only
$162 is paying down your principal
$435 is in interest
at is rate its gong to take a long time to pay off the mortgage, about 30 years.


Option 2:


Get a 15 year 120k mortgage at 3.75%, the first month your payment is $872, now
$497 is paying down your principal
$375 is interest.
as you can see your paying off the loan a lot faster. You payments are higher, but only $375 higher. If you can afford it this is the route to choose.


Option 3:


Get the 30 year mortgage, but pay extra to principal every month. The more you can afford to pay and the sooner in the mortgage you pay it, the faster the note will get paid off.

[Listener2307]

I used 15 year mortgages on everything. As a result I have everything paid for and am comfortably retired.


I have seen the result of using 30 year mortgages, and it is not always pretty. Equity builds too slowly, so when it comes time to sell there is very little equity to carry forward. So you have to start over. And over. And over.


The question to me was basic: How much money do you want to owe on the day you retire?

[jrkliny]

Originally Posted by Listener2307

.......
The question to me was basic: How much money do you want to owe on the day you retire?

Like many others on this forum, I took out a mortgage several years after I retired. The mortgage is cheap and the money I did not spend is invested and doing well.

In any case the OP seems to have opened the thread and now vanished.