Comments on: Why we have a 15 year mortgage

By: Ditech Refinance

Ditech Refinance — Thu, 23 Apr 2009 18:04:51 +0000

For those who have a stable income, but may not have the discipline to pay down a mortgage, a 15 year fixed rate can provide a realistic goal of eventually being mortgage free, while saving thousands on interest payments, compared to a 30 year loan.

By: Rajeev Kumar Singh

Rajeev Kumar Singh — Wed, 08 Apr 2009 06:11:06 +0000

I agree with you on this completely… Shorter term loans always make sense because
1. They ensure that you stcik to the discipline of paying back substantial part of the debt regularly.
2. Shorter tenure means lesser interest outflow on an absolute basis.
3. Lesser interest outflow in the initial years and more principal gets repayed making it easier for you to foreclose the loan before tenure.

By: Corporate Barbarian

Corporate Barbarian — Tue, 07 Apr 2009 16:32:20 +0000

I’ve only had 30 year mortgages, because at the time, we couldn’t afford the higher payment of the 15 year term. We did pay it off early by sending extra principal payments, though not every month. I can see why you’d want to commit to the payment schedule. A friend of mine recently refinanced his 30 year mortgage, which had 20+ years remaining, with a 15 year mortgage.

By: Rebekah

Rebekah — Tue, 07 Apr 2009 16:10:03 +0000

I work this way to. I’m much more motivated when I “have” to do something instead of just thinking it’s a possibility.