My divorce is chugging along - (whee!!!!!), and I'm refinancing my house.
I am told if I get a 20 year loan opposed to a 30 year loan, that I could pay it off by making 2 extra payments a year. This seems wonderful.
My concern here is the economy. If I get a 30 year loan at a much lower rate, I can pay it as though it were a 20 or 15 year loan currently, but if I lose my job, then I could fall back to the lower rate.
What do you think guys? I'm literally starting over again here, and I want to think out my solutions.
Miz Pat
30 year vs 20 year loans
June 30th, 2009 at 12:12 am
June 30th, 2009 at 12:44 am 1246319054
June 30th, 2009 at 02:55 am 1246326939
June 30th, 2009 at 03:12 am 1246327953
June 30th, 2009 at 03:34 am 1246329257
We started out with a 15-year-loan on our home and switched to 30 years when we owned two homes for a while. Could only reasonably afford the 30-year when I refied in pregnancy (dropped one income). So we had a 30-year-loan for about 8 years.
We just refied (absurdly low rates) and considered the 15-year, but with time we feel so much safer financially with the 30-year. If I can keep my job 15 more years, the mortgage will be paid in that time, but I have come to prefer the flexibility of a 30-year loan. If I lose my job, or if something terrible financially happens, I can probably keep my house. Phew!
June 30th, 2009 at 04:00 pm 1246374039
June 30th, 2009 at 05:06 pm 1246377983
I'm going to keep this all in mind with I talk to my mortgage banker. You guys know you are all huge blessings.
Thank you.