I’ve found equivalent questions, nevertheless they all seem to manage a preexisting 30 year financial and whether it makes sense to re-finance in order to good fifteen. My personal real question is a bit additional. I’ve not yet purchased a property however, I’m trying to to choose and this home loan to choose. This is why, There isn’t to take on refinance costs and you can a general change in interest rate.

The challenge is the fact I am able to spend the money for percentage on a good 15 season financial and you may would rather not to ever pay off a house for another 30 years. And so i would definitely go with good 15. Yet not, for the considering certain home loan hand calculators (which it is possible I am deciding on incorrectly) seemingly there is no difference in delivering a 30 season mortgage and just purchasing it well when you look at the fifteen years. The newest hand calculators seem to say that–incase the same interest rate–might spend the money for exact same notice more than 15 years.

Because of this, my personal thought are, I will obtain the 31 and you may shell out they like a great fifteen. In the event the around actually is no disadvantage upcoming this provides me personally new capacity to afford the regular 29 seasons payment when needed owed to pecuniary hardship (death of a job etc.)

Therefore my personal real question is, in the morning We lost something? If not, why must anyone previously get an effective 15 season instead of just settling a 30 12 months when you look at the fifteen years?

For the sumount of money complete to pay off an excellent 15 season home loan compared to paying a thirty year mortgage from inside the 15 years?

PS: Please don’t recommend taking the 29 12 months and you will investing the other money. I am aware this is a choice while the one-many carry out strongly recommend. Continue reading →