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Go the 15 instead of the thirty ( if you can )...............
Actually always thought that myself, but someone sat me down and ran the numbers. It can work out cheaper to take a thirty but just make extra payments. This provided the loan doesn't have pre-payment penalties.
IIRC theory was taking the longer term note gives some flexibility in case down the road finances might be tight with that 15 year term.
for most an adjustable is usually best since we tend to move a few times in our early years . but when it comes to fixed mortgages 30 years may be best .
you have the option of paying it off in 15 years if you want but you can take up to 30 years and invest the excess elsewhere .
If mortgage rates a year ago were, say, 4.0% and today they are 4.75%, then the same apartment sold at the same price today as a year ago will cost the buyer more (unless bought for all cash) because, all other terms being equal, the monthly mortgage payments will be higher. Which is the obvious comparison to be thinking about as we talk about WHAT COULD BE CAUSING A DROP-OFF IN SALES OVER TIME. That is so completely basic, obvious, and indisputable that you have to go well out of your way to think I was talking about anything else.
Probably should wait a few seconds and check yourself before you start assuming other people don't know what they're talking about.
rates do not go up in a vacuum . they go up because the economy is doing better . peope tend to earn more and more people are working .
local markets determine everything . just compare home prices from 2 years ago when rates were lower . they are much higher today .
risng rates tend to spur demand in housing as people just buy less house as rates rise , not no house . so the old we better buy now before we can afford less house kicks in and that tends to increase demand .
eventually you exhaust the decent supply and have less and less attractive homes on the market so it appears sales are slowing but they are not . they are paused until better supply comes on line .
I went with 30 year fixed rate mortgage for several reasons 1. Historic low rates (below 4%), 2. I felt inflation would reduce the value of the loan over time, 3. I wanted to claim tax deduction for 30 years, 4. I wanted a chance at buying another property within 5 years.
One of my previous coworker would complain they paid the house in cash and therefore have a higher income tax and felt it was a mistake.
paying 3 or 4 dollars to win a one dollar prize is just poor thinking . that interest is an expense .getting a portion back is no bargain compared to not paying it all .
whether you can have a mortgage and get better returns elsewhere is another issue .
but a tax deduction by itself is no bargain . ditch the expense and your piggy has more money .
paying 3 or 4 dollars to win a one dollar prize is just poor thinking . that interest is an expense .getting a portion back is no bargain compared to not paying it all .
whether you can have a mortgage and get better returns elsewhere is another issue .
but a tax deduction by itself is no bargain . ditch the expense and your piggy has more money .
It is not just about return, but also liquidity risk and property risk management. Private equity makes their money during distressed situation and people having to sell at discount, because of lack of cash flow. You try to dumb down complex financial modeling into cliches and folklore.
Yup well thats what happens when they think crap is good!! (And msot nowadays do)
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