Related Posts
Is ETH still a good investment?
Conversation Starter
Rising Star
More Posts
Who all are coming to Sunburn this year?
Bowl Leader
KIN lookin good!
How is the work life balance in cognizant ?
Additional Posts in Personal Investment Chatter
Conversation Starter
Conversation Starter
Why don’t people just hold TQQQ instead of QQQ?
Conversation Starter
New to Fishbowl?
Download the Fishbowl app to
unlock all discussions on Fishbowl.
unlock all discussions on Fishbowl.
How likely is it that you will invest the difference though? In theory it is a great plan but as expenses stack up as you get older you may not. With the 15 year you know exactly what you are getting. Not saying you should definitely go with the the 15 year but think through your plan for investing the difference to make sure you actually follow through.
Rising Star
Yes, agreed. It is for OP to know what works for him best. A longer term loan is better if OP can truly invest the difference
I prefer a debt free mentality even though 30yr mortgage may be financially sound
Enthusiast
Agree with EY 1 - can you afford the 15 year payment? If so, take that one. You end up paying so much less interest.
I just refinanced my 30-year (at 28 years left) to a 20-year. I will end up paying the same amount monhtly, but interest went from $130k (total in 30 years) to $50k (in 20 years). Closing costs were $6k though that I had to take out of my cash savings (not emergency funds 🙏)
Enthusiast
Same! Went from 30 year to 20 year and am saving a TON of money over the life of the loan.
Do you want a lower monthly payment or a lower total payment?
Thanks! What I struggle with is, rather than paying off the mortgage faster, wouldn’t I get better returns by plunging the extra into an index fund? Overall agree that the 15 year is better from a total payment perspective
The 2.5% is risk free. The higher market return has risk. Would you buy on margin at 2.5%? If so - have at it. That IS low enough that it should be considered - but even long term you have to risk-adjust when comparing.
Nothing prevents OP from taking out the 30yr while still paying additional principal.
Agree that is an option but your rate is still higher. It does give you more flexibility for the higher rate though
Conversation Starter
Your rates are still high. I just refinance for 15 yrs with 1.98 and 2k title cost from interfirst. Shop around. Look for pennymac,better, loanlock etc.
It depends on your personal risk tolerance. I am very diligent with budgeting and saving. I would go with the 30yr and invest the extra money each month. However if you think you would end just spending the extra cash the 15 year may be a better option.