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Probably not if you don't want to still pay for it when you are 70 and on SS.
BUT - I would take the 30 years (as I actually did) and pay more or double on the principal every month if possible. However, that is your personal choice and you can go back to paying only the minimum payments if anything happens in your life like sickness or unemployment.
I did pay double every month and ended having my house paid off in less than 10 years. By agreeing to 30 years fixed mortgage, I locked low monthly payments just in case I would need it.
(Send in your extra payments separate from your regular payment and clearly designate them to apply to principal only. This will ensure your extra payments are not credited to unearned interest.)
Make SURE that your mortgage company is OK with extra payments without penalty.
And there are other factors to consider.
Your other debts:
Before you even think about paying off your mortgage early, you should get rid of high-interest debt, student loans, and other sizable debt.
If your mortgage rate is ~4% but you can get a 6 - 7% return on a diversified investment portfolio, paying off your mortgage early won't make much sense.
I had enough money to put in different baskets and my mortgage, many years ago, was close to 7% - so paying it off quickly made sense to me.
How long you plan to live in that house:
Pouring money into a house that you don't plan on living in for more than 5 or 10 years ties up a good chunk of your liquidity for the foreseeable future.
I am living in my house for 23+ years now, and don't plan to sell it and move anywhere. Also, would I want to sell it - it's all my money, not the banks. The house value already quadrupled over the years, so I think I made good money on it.
Just because you buy a house using a 30 year mortgage doesn't mean you must STAY in that house paying off that loan for 30 years. If plans change, (for example you take a new job that requires relocation, or decide to retire somewhere else) you could decide to keep the house but rent it out for enough to make the mortgage payments/taxes/insurance, or put it on the market and sell it. Hopefully paying off what's left on the loan with the proceeds of the sale. People do it all the time.
In 2015, at ages 52 and 56 we took a 30 yr mortgage.
No way do we intend to make final payment at 82 and 86 ( if we live that long).
We have for 3 if the 4 years paid agressively towards principal, and have shaved 12 years off the end.
We will continue again once we have paid off the renovation loan, and by the time my OH quits work at age 70, we will have the mortgage paud off if not sooner.
Just be sure there is no prepayment penalty clause.best as you buy your new home!;
PS: we simply add more to principal only payment.
Our mortgage has been transferred through 4 different servicers, the last two if I make a payment higher than due, it automatically asks if the extra funds is to go towards principal, and I opt for yes. It's easy to make even a few dollars extra towards principal that way.
Is it a good idea for someone in their 40s to be taking a 30 year mortgage on a home?
Sure, why not?
With a 30 yr mortgage you have some flexibility. You can choose to pay if off faster if you want, turning a 30 yr mortgage into a 20-year mortgage or pay it off even faster than that.
On the flip side if you need to keep your payments low and/or you want to use money you might otherwise use to pay down the mortgage faster to instead put into investments, you can do that.
Or you could do some combination of paying off faster than 30 years but still putting more in the market to invest.
Is it a good idea for someone in their 40s to be taking a 30 year mortgage on a home?
I took a mortgage on n my 40s. I just pay more to move the payoff loser to 15 years
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