Current Events > is it better to get a 30 year mortgage or a 20 year mortgage?

(+) Yeah! (+)

i cant decide and know nothing of finance

im hearing different things
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Depends on how much of a payment you can afford.

20 year will save you a bunch of money in the long run.

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How did you buy a condo without already having an approved mortgage

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LeoRavus posted...

Depends on how much of a payment you can afford.

20 year will save you a bunch of money in the long run.

I can afford either, could even afford 15 year

(Couldn't pay cash tho)
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MC_BatCommander posted...

How did you buy a condo without already having an approved mortgage

I was preapproved
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the longer the mortgage the more interest you will be paying. The shorter the term the higher the monthly payment. Pretty much all you need to know

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No_U_L7 posted...

I can afford either, could even afford 15 year

(Couldn't pay cash tho)

Get the shortest one you can afford then. Also take into consideration how stable your job is and if you'd be able to keep up with payments for 15-20 years.

I've been at my house for almost 20 years with a 30 year mortgage. I was able to save up enough money to pay it off now if I wanted to. If I got a 15 year mortgage my shit would have been paid for.

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Rule of thumb: pay at most 1/3 of your salary in mortgage (assuming no other recurring debts)

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ArchangelBaruch posted...

Rule of thumb: pay at most 1/3 of your salary in mortgage (assuming no other recurring debts)

I'm at like 25% with 30 yr, 28% with 20 yr
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The lesser the interest rate, the better, especially if you can pay it off early. You can always add more to the principal balance every time you pay your monthly bill or even put in extra at any time.

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