Comments on: Is it good to start with 30 yr fixed and then making extra payments or going with 15 yr fixed initially ? http://valueoffuturepayments.com/is-it-good-to-start-with-30-yr-fixed-and-then-making-extra-payments-or-going-with-15-yr-fixed-initially Future Payments Value Advice Mon, 06 Sep 2010 05:10:18 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: btwitkin http://valueoffuturepayments.com/is-it-good-to-start-with-30-yr-fixed-and-then-making-extra-payments-or-going-with-15-yr-fixed-initially/comment-page-1#comment-1595 btwitkin Wed, 14 Apr 2010 07:11:24 +0000 http://valueoffuturepayments.com/is-it-good-to-start-with-30-yr-fixed-and-then-making-extra-payments-or-going-with-15-yr-fixed-initially#comment-1595 This is very easy Take the 30 year fixed. Make your payments based on a 15 year amortization, based on the 4.875% rate. You can use an online mortgage calculator to figure out the payment. If things don't change financially for you, you will have the loan paid in 15 years. BUT, heaven forbid, something happens and you cannot make that higher payment. At least you have the fallback of the 30 year payment, without having to worry about having a late payment, paying late fees, hurting your credit, etc... This is very easy

Take the 30 year fixed. Make your payments based on a 15 year amortization, based on the 4.875% rate. You can use an online mortgage calculator to figure out the payment.

If things don’t change financially for you, you will have the loan paid in 15 years.

BUT, heaven forbid, something happens and you cannot make that higher payment. At least you have the fallback of the 30 year payment, without having to worry about having a late payment, paying late fees, hurting your credit, etc…

]]> By: loanmasterone http://valueoffuturepayments.com/is-it-good-to-start-with-30-yr-fixed-and-then-making-extra-payments-or-going-with-15-yr-fixed-initially/comment-page-1#comment-1594 loanmasterone Wed, 14 Apr 2010 07:11:21 +0000 http://valueoffuturepayments.com/is-it-good-to-start-with-30-yr-fixed-and-then-making-extra-payments-or-going-with-15-yr-fixed-initially#comment-1594 if you sign loan docs for a 15 year mortgage and find out that you would be short one month you would then have a late penalty. If you signed your loan docs for a 30 year mortgage the monthly payments would be a little lower. Using an mortgage calculator you may figure out the amount you need to add to make the monthly payments as if they were a 15 year mortgage. If you come up short one month and can not make the 15 year monthly payment there is no penalty. You simply make the 30 year monthly payment. There are some lenders that offer an 4 option monthly payment plan where you can make the 30 year monthly payment and without penalty you may make the 15 year monthly mortgage payment. You also have 2 other options under this plan that you might take advantage of. Why are you concerned with the interest rate? This is a tax deductible item on your federal income tax each year. So it matter not what the rate is since you are gonna get this back as a tax credit. Your interest rate will determine your monthly mortgage payment, but the interest rate is not always of the most paramount of importance in getting a mortgage loan in all instances. For tax and legal matters you should consult with your tax consultant and attorney. I hope this has been of some interest to you. "FIGHT ON" if you sign loan docs for a 15 year mortgage and find out that you would be short one month you would then have a late penalty.

If you signed your loan docs for a 30 year mortgage the monthly payments would be a little lower. Using an mortgage calculator you may figure out the amount you need to add to make the monthly payments as if they were a 15 year mortgage.

If you come up short one month and can not make the 15 year monthly payment there is no penalty. You simply make the 30 year monthly payment.

There are some lenders that offer an 4 option monthly payment plan where you can make the 30 year monthly payment and without penalty you may make the 15 year monthly mortgage payment. You also have 2 other options under this plan that you might take advantage of.

Why are you concerned with the interest rate? This is a tax deductible item on your federal income tax each year. So it matter not what the rate is since you are gonna get this back as a tax credit.

Your interest rate will determine your monthly mortgage payment, but the interest rate is not always of the most paramount of importance in getting a mortgage loan in all instances.

For tax and legal matters you should consult with your tax consultant and attorney.

I hope this has been of some interest to you.

“FIGHT ON”

]]> By: xlongtall http://valueoffuturepayments.com/is-it-good-to-start-with-30-yr-fixed-and-then-making-extra-payments-or-going-with-15-yr-fixed-initially/comment-page-1#comment-1593 xlongtall Wed, 14 Apr 2010 06:23:07 +0000 http://valueoffuturepayments.com/is-it-good-to-start-with-30-yr-fixed-and-then-making-extra-payments-or-going-with-15-yr-fixed-initially#comment-1593 It would depend upon your income status, if you did not need a buffer I would go with the 15 year fix. It is always good to have a little extra cash, to stay with the 30 year and pay more to the principal if you are not experiencing a financial hardship. It would depend upon your income status, if you did not need a buffer I would go with the 15 year fix. It is always good to have a little extra cash, to stay with the 30 year and pay more to the principal if you are not experiencing a financial hardship.

]]> By: Demo S http://valueoffuturepayments.com/is-it-good-to-start-with-30-yr-fixed-and-then-making-extra-payments-or-going-with-15-yr-fixed-initially/comment-page-1#comment-1592 Demo S Wed, 14 Apr 2010 05:53:15 +0000 http://valueoffuturepayments.com/is-it-good-to-start-with-30-yr-fixed-and-then-making-extra-payments-or-going-with-15-yr-fixed-initially#comment-1592 If you are not going to have any trouble making the payments on the 15 year mortgage, the 15 year loan would be the better choice in terms of total amount of intrest paid of the life of the loan. The 30 year loan will give you the flexibility of having a lower payment, and if you needed to skip payying extra towards the principle, you always could. If your future is uncertain and you don't have 6 months of expenses saved in the bank for a rainy day fund, go with the 30 year loan. If your future seems somewhat stable, and you do have 6 months of expenses set aside in a rainy day fund, go with the 15 year loan. The answer depends on your situation. If you are not going to have any trouble making the payments on the 15 year mortgage, the 15 year loan would be the better choice in terms of total amount of intrest paid of the life of the loan.

The 30 year loan will give you the flexibility of having a lower payment, and if you needed to skip payying extra towards the principle, you always could.

If your future is uncertain and you don’t have 6 months of expenses saved in the bank for a rainy day fund, go with the 30 year loan.

If your future seems somewhat stable, and you do have 6 months of expenses set aside in a rainy day fund, go with the 15 year loan.

The answer depends on your situation.

]]> By: knowitall http://valueoffuturepayments.com/is-it-good-to-start-with-30-yr-fixed-and-then-making-extra-payments-or-going-with-15-yr-fixed-initially/comment-page-1#comment-1591 knowitall Wed, 14 Apr 2010 05:23:11 +0000 http://valueoffuturepayments.com/is-it-good-to-start-with-30-yr-fixed-and-then-making-extra-payments-or-going-with-15-yr-fixed-initially#comment-1591 Go with the 30 and put the extra in savings until you have at least 8 months total income cushion. Then you can start working on the mortgage but do not pay them to let you do this - that is a scam. You may add more to go towards principal without paying a fee to do it. Go with the 30 and put the extra in savings until you have at least 8 months total income cushion. Then you can start working on the mortgage but do not pay them to let you do this – that is a scam. You may add more to go towards principal without paying a fee to do it.

]]> By: Frank112 http://valueoffuturepayments.com/is-it-good-to-start-with-30-yr-fixed-and-then-making-extra-payments-or-going-with-15-yr-fixed-initially/comment-page-1#comment-1590 Frank112 Wed, 14 Apr 2010 05:06:40 +0000 http://valueoffuturepayments.com/is-it-good-to-start-with-30-yr-fixed-and-then-making-extra-payments-or-going-with-15-yr-fixed-initially#comment-1590 30 and pay it off in 15 if you can afford it. If you can more than easily afford the 15 then go that route, otherwise if you want to pay off the 30 in 15 you are paying slightly more than if you took the 15 deal in the first place. 30 and pay it off in 15 if you can afford it. If you can more than easily afford the 15 then go that route, otherwise if you want to pay off the 30 in 15 you are paying slightly more than if you took the 15 deal in the first place.

]]> By: Alby http://valueoffuturepayments.com/is-it-good-to-start-with-30-yr-fixed-and-then-making-extra-payments-or-going-with-15-yr-fixed-initially/comment-page-1#comment-1589 Alby Wed, 14 Apr 2010 04:15:40 +0000 http://valueoffuturepayments.com/is-it-good-to-start-with-30-yr-fixed-and-then-making-extra-payments-or-going-with-15-yr-fixed-initially#comment-1589 Go with the 15yr fixed. Making the extra payments is foolish, because you are already paying excess interest in your monthly payment on the 30yr. If you can afford the payments and qualify for a 15/yr fixed, get it. By all means... Go with the 15yr fixed. Making the extra payments is foolish, because you are already paying excess interest in your monthly payment on the 30yr.

If you can afford the payments and qualify for a 15/yr fixed, get it. By all means…

]]> By: Mel M http://valueoffuturepayments.com/is-it-good-to-start-with-30-yr-fixed-and-then-making-extra-payments-or-going-with-15-yr-fixed-initially/comment-page-1#comment-1588 Mel M Wed, 14 Apr 2010 04:05:20 +0000 http://valueoffuturepayments.com/is-it-good-to-start-with-30-yr-fixed-and-then-making-extra-payments-or-going-with-15-yr-fixed-initially#comment-1588 If you are unsure about your job or how the economy could impact your finances, you may find more peace of mind if you go with a 30 year loan and making extra payments when you can to pay off the balance early. The 15 year loan does have a tempting rate. If your budget can handle it and you aren't worried about making that payment, you'll save more money by taking this route. Hope this helps. Good luck! If you are unsure about your job or how the economy could impact your finances, you may find more peace of mind if you go with a 30 year loan and making extra payments when you can to pay off the balance early.

The 15 year loan does have a tempting rate. If your budget can handle it and you aren’t worried about making that payment, you’ll save more money by taking this route.

Hope this helps. Good luck!

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