rec.sport.football.college

On Aug 14, 12:31 am, McMahone wrote:
> On Aug 13, 12:58 pm, xyzzy < ...@ > wrote:
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> > On Aug 11, 7:56 pm, Bill Lang wrote:
>
> > > I don't chew my cabbage twice, "Thomas R. Kettler"
> > >
>
> > > > In article ,
> > > > Bill Lang wrote:
>
> > > >> I am looking forward to being able to finally buy my first
> > > >> home, but I have a hard and fast rule: Don't look at houses I
> > > >> can't afford with a traditional 30 year note.
>
> > > > Here's a smarter rule. Don't look at a house you can't buy with
> > > > a 15-year loan. 30-year loans are a license to print money for
> > > > the bank since after 15 years, you still owe 75-80% on the
> > > > principal. If you do get a 30-year which I don't recommend, make
> > > > certain that it is written that you don't have prepayment
> > > > penalties (esp. in the fine print since some banks are notorious
> > > > for doing that).
>
> > > At 15 years, I'd need a bigger down payment to bring the terms
> > > into my budget. Not sure I want to continue to be an apartment
> > > dweller for that much longer. Or I'd have to start looking at
> > > places way, way down the list. 30 years ain't the best, but the
> > > tradeoffs look more appealing to me.
>
> > Buy a place with the 30-year and then refinance to a 15year when you
> > have the scratch to make it work.
>
> > That's what I did. I love my 15 year % fixed rate mortgage,
> > especially watching what's about to explode around me.
>
> I very much agree with this poster. We did a 30 year loan and kept it
> two years. Refinanced to a 15, kept the payments exactly the same,
> cut 13 years off our payments and saved $100K. Not a bad day's work.
> We caught interest rates low (even a bit less than your )

That's another advantage of a 15 year loan. The interest rate has to
be significantly different to make a noticeable difference in the
payment. Once you have one of these loans, you almost never think
about refinancing.