DH and I are trying to consolidate our debt. It's not much but it's frustrating how much we pay to the credit cards to pay them off and they just raised their rates on us(we have great credit btw). I called the mortgage company and they can give us a 15 year mortgage for only a little more than what we are paying now which pays off the credit debt too. I worked on the budget and it looks like we can do it especially considering I'm going back to work after the summer. So my question is anyone have any problems with a 15 yr as opposed to a 30 yr? We've always held a 30 yr mortgage so I don't know the pros and cons of these. What if DH got transferred again in the next couple of years, does that hurt us? I appreciate all of your help. I plan on asking these questions at our meeting tomorrow with the mortgage consultant but I wanted an opinion from someone who has been there. Thanks!
Anyone have a 15yr mortgage?
- Thread starter igglesfan
- Start date
babindy
Cathlete
I honestly don't know why everyone doesn't have a 15 year mortgage. You usually get a better rate (at least when I did mine). And you pay less interest over time. The payment is not THAT much more than the 30 year. And I still pay extra. I'm hoping to have mine paid off in 12 yrs.
That said, if the payments are tight I think you can get a 30 year and make it a do-it-yourself 15 year by making prepayments. Then if you can only cover the 'actual' payment on some months if the money is tight, there's no penalty.
Just my $0.02
That said, if the payments are tight I think you can get a 30 year and make it a do-it-yourself 15 year by making prepayments. Then if you can only cover the 'actual' payment on some months if the money is tight, there's no penalty.
Just my $0.02
unfetteredpast
Cathlete
Not to mention that you're also paying down the principle faster.
If there is a possibility of selling in the next few years, make sure that your new mortgage doesn't have a prepayment penalty.
If there is a possibility of selling in the next few years, make sure that your new mortgage doesn't have a prepayment penalty.
Thanks for the feedback. I like the idea of paying less interest. We tried paying a little extra to the 30 year but I'm not that disciplined. That's why I like bills set at a certain number and taken out automatically! Oh and the rate is better than what we have now. My only hesitation on refinancing the mortgage is that we have finally started paying on the principal and now I feel as if we are starting over. But I guess it's better in the long run. thanks again and wish us luck! Have a great weekend, oh wait, it's only Thursday
Can you tell I'm looking forward to Mother's Day weekend?!
Can you tell I'm looking forward to Mother's Day weekend?!
angie_nrs
Cathlete
You might also want to consider the 20 year if the 15 seems like it might be too tight for you. I think the average rule of thumb is to have your mortgage be no more than 25-30% of your combined take home income. That gives you breathing room if you lose your job, have a medical emergency, get injured, etc.
DH and I opted for a 15 year and had the payment automatically deducted from our acct. every 2 weeks. You'll get a couple of extra payments in per year doing it that way. If I remember correctly I think the payment was about $100 more per month as opposed to the 30. We saved lots of money in interest.
Angie
DH and I opted for a 15 year and had the payment automatically deducted from our acct. every 2 weeks. You'll get a couple of extra payments in per year doing it that way.
If I remember correctly I think the payment was about $100 more per month as opposed to the 30. We saved lots of money in interest.Angie
nancy324
Cathlete
Interesting thread. For a long time, we had a 30-yr. mortgage that we are paying down as if it were 15 years. We felt that if one of us lost our jobs, we could just pay less without worry about defaulting. We just kept paying more than was due each month. I think we're down to about 10 years left on our mortgage now, and I think we currently have a 15-yr. mortgage (we've refinanced so many times I forget!). It may be different now with rates being so low, but you may want to consider the extra peace of mind that comes with a lower monthly minimum.
