[JViello]

Originally Posted by DandJ

HAHAHA! You sound like Jeremy.

Toto?

LOL Kohler, powerflush. I have kids.

[UconnHusky1]

Originally Posted by JViello

I would never ever do a 30-year mortgage again. Never. 15 year or nothing. Take a look at this amortization table to get an idea. (Be sure to click "see details by year")

Mortgage Amortization Calculator

This piece of advice if not for everyone and in fact is not recommend by many in the financial community.

Personally, I would prefer a 30 or even a 40-year mortgage with the current record low rates being offered. The spread between a 15-year and 30-year does not justify the commitment of a 15-year mortgage.

With my current 30-year mortgage, I have these benefits:

1) Improved flexibility...(I can always apply more towards principal at any time and treat it like a 15-year mortgage).

2) Take advantage of the stock market and invest for retirement. My 30-year mortgage allows me to invest more towards tax sheltered investment accounts. Based on historical returns, my maxed out Roth IRA will offer a much higher return than a 15-year mortgage....since the rate of return on a mortgage is for the most part the interest you are paying on it.

3) Improve my diversification...I guess this is similar to #1, but financial risk is improved with a 30-year mortgage since you have the opportunity to expand your assets across more low risk options (savings, money market, emergency fund, etc.). Ultimately, you don't want all of your assets tied up in home equity.

4) You can't avoid inflation, but with a 30-year mortgage it will guarantee me that I'm hedging against it.

5) Tax deductions

[S2000]

I'd rather pay off the house faster. 15 yr for sure unless you can't stomach it. I put down 20% and hope to pay off by year 12. No way do I want to pay the bank anymore of my hard earned money.

I'd say this guy needs to continue renting. I would for sure find a cheaper rental. There are many 1br less than $800 out there or if a house is on his wish list. Move back to Dad and Mom and save for a year.

I stayed with my parents till I was 26 and had a nice 20% down-payment for a house. Never rented ever but I manage about 7 rentals right now

[Tetto]

Originally Posted by UconnHusky1

This piece of advice if not for everyone and in fact is not recommend by many in the financial community.

Personally, I would prefer a 30 or even a 40-year mortgage with the current record low rates being offered. The spread between a 15-year and 30-year does not justify the commitment of a 15-year mortgage.

With my current 30-year mortgage, I have these benefits:

1) Improved flexibility...(I can always apply more towards principal at any time and treat it like a 15-year mortgage).

2) Take advantage of the stock market and invest for retirement. My 30-year mortgage allows me to invest more towards tax sheltered investment accounts. Based on historical returns, my maxed out Roth IRA will offer a much higher return than a 15-year mortgage....since the rate of return on a mortgage is for the most part the interest you are paying on it.

3) Improve my diversification...I guess this is similar to #1, but financial risk is improved with a 30-year mortgage since you have the opportunity to expand your assets across more low risk options (savings, money market, emergency fund, etc.). Ultimately, you don't want all of your assets tied up in home equity.

4) You can't avoid inflation, but with a 30-year mortgage it will guarantee me that I'm hedging against it.

5) Tax deductions

You left one off of your list- peace of mind that you dont have to pay that tidy sum anymore. Thats worth alot to me

[AmyBergquist]

Take the advice of the multiple people on this thread that are telling you to rent. This is my job and I see people like you all of the time. You're never going to be happy with a house that you buy, you're the type of person that doesn't want to settle. Buying a house is always about settling on a few factors (unless you have an unlimited budget). Keep renting (and mooching heat off those in the apartments surrounding you- your heating bill would be astronomical in a stand alone house based on your temperature requirements).