15 year at 2.5% vs 30 year at 3.25% fixed rate mortgage loans. How would you think about this and which one would you recommend?

like
Posting as :
works at
You are currently posting as works at

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.

like

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

like

Agree with EY 1 - can you afford the 15 year payment? If so, take that one. You end up paying so much less interest.

like

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 🙏)

like

Same! Went from 30 year to 20 year and am saving a TON of money over the life of the loan.

like

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.

like

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

like

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.

Related Posts

What is the best setup for Retirement Plan Advisors? RIA? B/D? Hybrid? Other?

like

How much percentage of your Salary do you Save/Invest?

like

What health insurance bkd has? Any 401k match?

like

Hi all, I’m in the north east metro area and due to the current RE market we decided to look into PA specifically Lancaster. Anyone in this market and have any thoughts on where it’s headed? We’re looking purchasing a single family property all cash at 110k that rents for $1100 a month. The last owner bought for 35k like 15 years ago 😩 but hoping buying and holding for a few years will give a equal or greater returns over the long run.

like

Currently have chase sapphire but thinking of switching to Reserve. Should I?
Wife will also be authorized user, we do travel and will use this card for all our purchases

like

Getting my first credit card but my credit score is around 650... what would be best for me? I keep getting rejected. Does it matter who I get a card with?

likehelpful

Hi guys,

I got my full and final settlement today but I can see no tax deduction. Does anyone know the reason. 4k tax used to be deducted every month till now. I also got gratuity and leave encashment along

like

I never thought I would ever make $1m in my life but using Henry Artem's strategy on trading has made this possible. I urge everyone to take advantage of this strategy and stop watching so many indicators and being scared of the dip. You can contact him via 🆃🅴🅻🅴🅶🆁🅼 (HENRYARTEM) Whats👤App➡️ +44 (7494)493 - 602

Post Photo
like

My company allows contributions to both traditional (pre-tax) and Roth (post-tax) 401k. Is it better to split my contributions between the two? For example, I could contribute 3% to Roth and 3% to traditional (my employer matches up to 6% total but that can only goes to traditional)

like

Favourite money saving hacks? Signed, Broke in New York.

likehelpful

Hey fishes, can someone tell me how the 80c bracket works, i know i can get exempt upto 1.5lakh under it, what i wanna know is does PF comes under it or not? For example if my yearly pf deduction is 20k and VPF is 10k so now will i still be able to show investment of 1.5lakh under 80c apart from PF and VPF or i'll be able to get exemption on only 1.2 lakh( 1.5lakh-30k= 1.2lakh)?

Thank you in advance!!

like

If you were 22 years old with $55k in cash and $14k in student loan debt what would you do?

like

Should I expect an income drop moving from CT to Houston?
Currently Tax Associate 1 (2 busy seasons) making 72k at a midsized firm.

like

Looking for whole life insurance. Who is better Mass Mutual or Northwestern or NY life?

like

What other cards to add to my collection? I have AmEx Platinum and Chase Sapphire Reserve. Fly Delta so AmEx is handy for lounges. Use Sapphire for dining/travel. Should I add Chase Freedom Unlimited?

like

Not related to consulting but anyone has experience with ratehub / canwise financial as lender for the house mortgage? They seem to offer better discount on Prime rate compared to the big 5 banks.

helpful

Hi all, I am trying to DCA bi-weekly into Vanguard ETFs, (VO, VTI etc). It seems like Fidelity does not support auto buying of non-Fidelity ETFs. So I was wondering which of these options you think is best?

1. Open a Vanguard Invest account
2. Look for Fidelity ETFs that are similar to Vanguard ETFs
3. Use smaller brokerages like SoFi l, Robinhood etc.

I really do not want to manage nor be active. My goal is to log-in like once every 6 months.

Thank you all.

like

Not related to job offer so people not interested in other topics may ignore pls

Its related to the salary

How do you manage your fund after marriage? I'm "She" about to get married by year end , I have my parents to look after so am I expected to spend same amount on in-laws & husband?

How do married people work out on salary part? I have zero idea . is it something that should be talked about beforehand?

like

More Posts

Anyone on H1 quit and taken a year off? Planning to transfer to H4, and then start looking after a year. Current H1 is valid for another 2 years. Suggestion/experience welcomed!

Got pushed into the manager role after a few of my superiors quit and I’m really struggling to fit into a leadership role. Any tips to help me adapt/grow into this position?

like

Accenture is on Hiring Freeze? Suddenly my status in portal says I'm on hold? HR said she will update me in 2,3 weeks about the decision now.
What's up with these guys? After all these documents processing, I am really very confused about my decision to join Accenture

like

I’m new to the cybersecurity industry, professionally speaking (I did/do a lot for family and close friends). I’ve completed a boot camp, which I regret doing. I have certifications for companies such as Qualys and ISC2, but no CompTIA security+ yet. I tailor my resume to position descriptions. It’s been a month or so, without any offers. What would you suggest that I do to get my first entry level position?

like

What kind of salary range can I expect in industry in a tier 2 city if I leave consulting after 3-5 years of SAP experience?

In investment management at Deloitte. Wrapping up my second year here and looking to jump into a FP&A role/ valuation analyst. Is this a reasonable jump and what would salary expectations be?

like

What are the health insurance benefits provided at SAP India ? What is the base cover and how much can it be extended to ?

like

How did you choose this area of law? How do you know when it's time to move to a different one?

like

I want to go out and pick up food instead of ordering, but the cold has me frozen to my couch

likefunny

Any BCBA’s in the Memphis area? I’ll be relocating there soon and testing. Looking to meet others in the field!

Hi folks,
New to Nagarro, can someone help with below query?

Once the project is allocated the project code will automatically reflect in SAP portal to fill the timesheet against the same or how is it done?

Also what do you guys fill in notes while filling the timesheet when on bench?

Is anyone hiring? I have sales experience in the telecom industry and real estate. Looking to relocate to the Bay Area. Looking to crush 2021! Thanks in advance.

like

Any cyber security folks here? or those interested in systems engineering? Potential role with TC 120-180, awesome team and wlb, at least compared to consulting.

like

Hello... does anyone have any info on being an EA at BDO??? About to interview and I'm curious. Thanks

likehelpful

What is advance monthly performance bonus in hcl ?
Is this variable component only ?
In offer letter it is mentioned that it will be" restricted for first year of employment " what does it mean

like

YOE - 7yrs, Automation Tester, what's the current market payout?

like

Hello all

Does Airbus revise offer on sharing a counter offer?

TIA🙂

like

Hello there audit folks! Anybody considering a shift to financial due diligence? Happy to discuss opportunities at EY, please DM me if interested. We are really looking for folks with healthcare or tech experience and can move extremely quickly during the interview process. I've been in the group for years and transitioned as a senior so can share the positives and negatives.

like
like

Can any1 refer me in JPmc ? I m an azure data engineer and yoe - 8. LWD - 19 oct

like

Additional Posts in Personal Investment Chatter

If planning to buy my first home in next 1-2 years, what should I be doing now leading up to the purchase e.g. things to boost credit score?

like

Diversification is for protecting the wealth but concentration is for creating. Agree or disagree?

like

Is this true. If yes, can someone recommend some Reits? I am mostly invested in vanguard fubds( vtsax and vigax) . If there’s some better return won’t mind investing elsewhere

Post Photo
like

I am planning to invest in REITs. What is better VNQ or XLRE? Is XLRE a mutual fund and tax wise slightly less beneficial than VNQ?

How much have you saved from refinancing your student loan?

Is VWINX a good fund to buy ?

like

When investing in a Vanguard Roth IRA, can you only invest into the Fed Money Market Fund (VMFXX) which is default? Or can you select other funds such as S&P (VOO)?

like

I bought Boeing a couple weeks ago and now have a $650 short term loss. Should I sell and buy something else to harvest?

likehelpful

Are there any tax benefits from working from home?

like

Did anyone get a jumbo loan with less than 20% down?

like

If you contribute partially to traditional 401k & partially to Roth 401k at your company, does it get confusing at all when it comes time to withdraw? Is it better to (cont.)

like
like

What’s the smartest allocation (for a late twenties person) of 100K right now, between ETFs, stocks, crypto and bonds? I am mostly in cash right now and feel I’m missing out on investment ops, but also wary of putting money in the wrong place. Any advice would be greatly appreciated!

like

What’s a reasonable amount to coinvest in a PEs fund? ~$300k nw

like

Thoughts on SoFi bank?

like

Is it too late in our lives to jump into a mortgage?

So my fiancée and I are relatively late in terms of finally landing well paying jobs and being able to save money instead of living paycheck to paycheck. We’re both 36 and currently rent a 2 bedroom in NY and have a combined savings of $35,000 which she wants to use as a down payment on a condo. I kinda just wanna continue saving while renting. I also literally just started contributing to my 401K so I’m also late in the game for that too.

helpful

Make 72k with not a lot savings at the moment since I am new in the workforce. Any advice on how to break into real estate.
Also already own a primary residence.

like

Been looking forward to the stock market to come back to earth for a long time. What should I buy

like

Hypothetically, if BBB was delayed and brought to the Senate floor next year (let's say February 2022) and passed, and the January 1st date for ending Roth conversions is left unchanged, what would happen to Americans who performed After-Tax 401k to Roth conversions in January? Would 401k custodians have to reverse the transactions and somehow factor in gains earned in users' Roth accounts since the conversion? Could there be penalties?

like

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the
Fishbowl app

See what’s happening in your industry
from the palm of your hand.

A phone with Fishbowl app

Scan your QR code to download
Fishbowl app on your mobile

Download app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy

Already have an account? Log in

Sign up for free to continue using Fishbowl

By continuing you agree to Terms of Use(New) and Privacy Policy(New)
Messaging rates may apply

Already have an account? Log in

For account settings, visit Fishbowl on Desktop Browser or

General

Legal