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The 15 year fixed started to become popular with payments higher but not extremely higher. Maybe the market would stay more open to lower income people with a 30 year fixed. I think if a person has the down payment and a real education on how mortgages work, a wiser choice would be the 15 year fixed.
The 15 year fixed started to become popular with payments higher but not extremely higher. Maybe the market would stay more open to lower income people with a 30 year fixed. I think if a person has the down payment and a real education on how mortgages work, a wiser choice would be the 15 year fixed.
This is true. I remember an article on Dave Ramsey's website illustrating how taking a 30 year instead of a 15 year mortgage can literally cost someone a million dollars or more (whereas they could have invested the money saved in a retirement account).
I would rather have 30 years fixed and pay double payments when I could afford it than have 15 years fixed, with higher payments and worry about what will happen if... ( I get sick, or lost job etc.)
I purchased a house in 2001, got 30 year fixed rate mortgage, made double payments - not all the time, but most of them, and my house will be paid off next year. ( I made one regular payment incl. escrow + one exact same payment for principal only).
My idea was to get the longest mortgage with the lowest payments just to be on a safe site, and then pay more at my own discretion.
I read in trade journals that the end of 30 year mortgages was near. I saw it coming and I use this fact as further proof that housing industry and the already devastated construction trades will not come back in our life time. While Realtors and your govt continue to tell the Sheep how wonderful things are and how things will turn around, I say no. I ask why do you think housing prices will come back? Because they always have after other economic downturns? What kind of answer is that? Because something has happened before is no proof it will happen again.
Other downturns have recovered sure. But we are in a much deeper DEPRESSION then the one in 1928. When other downturns have recovered we did not have nearly $4/gal gas, $100/m cell phone bills. $140/m cable TV bills, wages as low as they are now...........etc. People can't buy homes if they have no jobs. 8 million American families have lost their homes to foreclosure in the past 3 years. These people will never again be a homeowner as their credit is totaled. These people will be lifelong renters.
VA and FHA has tightened qualifications criteria, banks require credit so squeaky clean that few can qualify. Most mortgages require 25% down now. Who can save that kind of money on less then $25,000 per year income which 56% of Americans earn according to US labor statistics.
I hope I'm wrong but so far every single prediction I made over the past 3 years have been deadly accurate. My posts on this forum are carved in stone and dated with all my predictions. Anyone buying a home now is stark starring nuts.
I read in trade journals that the end of 30 year mortgages was near. I saw it coming and I use this fact as further proof that housing industry and the already devastated construction trades will not come back in our life time. While Realtors and your govt continue to tell the Sheep how wonderful things are and how things will turn around, I say .. no. I ask why do you think housing prices will come back? Because they always have after other economic downturns? What kind of answer is that? Because something has happened before is no proof it will happen again.
Other downturns have recovered sure. But we are in a much deeper DEPRESSION then the one in 1928. When other downturns have recovered we did not have nearly $4/gal gas, $100/m cell phone bills. $140/m cable TV bills, wages as low as they are now...........etc. People can't buy homes if they have no jobs. 8 million American families have lost their homes to foreclosure in the past 3 years. These people will never again be a homeowner as their credit is totaled. These people will be lifelong renters.
VA and FHA has tightened qualifications criteria, banks require credit so squeaky clean that few can qualify. Most mortgages require 25% down now. Who can save that kind of money on less then $25,000 per year income which 56% of Americans earn according to US labor statistics.
I hope I'm wrong but so far every single prediction I made over the past 3 years have been deadly accurate. My posts on this forum are carved in stone and dated with all my predictions. Anyone buying a home now is stark starring nuts.
Whenever someone has to call others "sheep", I go for the ignore function.
I would rather have 30 years fixed and pay double payments when I could afford it than have 15 years fixed, with higher payments and worry about what will happen if...
^^This.
Straight 30 year amortization on the debt...
and simple, straightforward provision for extra principle payments.
Whenever someone has to call others "sheep", I go for the ignore function.
Awesome!! You do just that. But keep your nightly news turned up loud because they speak to Sheep or at least anyone who would listen. If you need help finding the ignore button just ask me and I'll guide you.
Two key measures now suggest it's an excellent time to buy a house, either to live in for the long term or for investment income (but not for a quick flip). First, the nation's ratio of house prices to yearly rents is nearly restored to its prebubble average. Second, when mortgage rates are taken into consideration, houses are the most affordable they have been in decades.
This should be good news for people with excellent credit, that want to buy house, can afford solid down payment and the mortgage payments will not exceed 1/4 of their gross monthly income.
I would rather have 30 years fixed and pay double payments when I could afford it than have 15 years fixed, with higher payments and worry about what will happen if... ( I get sick, or lost job etc.)
I purchased a house in 2001, got 30 year fixed rate mortgage, made double payments - not all the time, but most of them, and my house will be paid off next year. ( I made one regular payment incl. escrow + one exact same payment for principal only).
My idea was to get the longest mortgage with the lowest payments just to be on a safe site, and then pay more at my own discretion.
I did something similar during the early stages — the first five years — of my mortgage. I paid the house off in 6 years total tripling and quadrupling principal payments monthly, and applying my entire annual bonus check every spring. I saved over $300,000 in interest payments.
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