We got a 25 year mortgage and paid it off in 6.5 years, now we are building a home and hoping that we can be wise and not have a too high of mortgage for this new home, which should be done in January this year it's a practical house and my raising children home not a dream house by any means! I hope to stay at home after this homes mortgage is paid off hopefully 3-5 years. Also expecting baby number 2! Thanks so much guys!
I really liked that you emphasized the importance of making a personalized decision based on your individual situation. My family lives in a very high cost of living area on the East Coast so a 30 year made the most sense for us as well. We still plan to pay off early.
we have a 15 yr mortgage that we got a really good VA interest rate on, we are also paying biweekly and making extra principle payments on the goal is to pay off in 7-8 years ;)
Really good video. I couldn't handle/afford a 15 year mortgage, so I went with a 30. It makes sense to go with a 30 on paper and if you can pay it off in 15 go for it. Thumbs up for a 30
We are purchasing a home in a 30-year mortgage, for the same reasons that you did. We wanted to lock in a lower payment, so we can pay more when we can, but not stress when we can't. Right now, we are building our saving accounts, and we have two children that want to serve missions in the next two years. The cost of those will be $12k each. We are encouraging them to save as much as they can to pay for it, but my husband and I will help pay. We feel it's going to be worth it for them to give time serving God and His children, and don't want finances to hold them back. We know God will magnify our efforts! Our oldest is also trying to save some for when he comes home, so he won't be flat broke after two years serving. I'm proud of the way he is hustling, pulling all the extra shifts he can as a firefighter to reach his financial, spiritual and life goals. Anyway, we plan to put all the pennies we can toward the mortgage, and as our children leave home (we have four), we'll add more and more $! It won't be in five years, but maybe ten!
We moved due to a job relocation right at the time the housing market slumped, leaving us with a house we were unable to sell due to competing with all the foreclosures and short sales. We rented out the house losing a lot of $ on it every month not to mention the upkeep and repairs between renters (we had refinanced with a large cash payout a year prior - BIG MISTAKE). After 7 years, in 2014, the market came up enough for us to sell. We never want to be in that situation again and so decided that although we were our current house right, we wanted to convert to a 15-year. We crunched all the numbers - there are a lot of scenarios and numbers to play with. Even though we could afford it, we didn't want to go over $200 extra. We saved a lot with the new rate, and our payment turned out to be a little less than $200 over what we were paying for our 30-year. For us, even though we plan to move in the distant future, we felt this was the best way for us to pay down our house and not be caught in over our heads again. We have already passed our break-even point and the house principal is well below what it was when we refinanced, just over a year ago. Although I am disciplined with money, my husband is not and we both knew this was best for us. If at any time in the future we struggle with the payment, we were assured by the lenders that we could convert the 15-year into a 30-year with no trouble. We are a double income family, but we only base our expenses off of my husband's income - learned many lessons from past mistakes.
I just love you guys 😀👍🏼 I agree on a 30yr mortgage & pay off in 10 or less. Here in Australia when you make extra payments it automatically comes off the principle on most mortgages. My mortgage has a redraw facility for any extra money paid so in effect it's an emergency fund I can call upon but it sits in the mortgage. If the worst happens! I'm way ahead on my repayments but a few months ago my 17yr old car finally gave up & I had to buy another car. I didn't have to apply for a car or personal loan I just redrew from my mortgage & bought the car cash. I'm still way ahead on my mort & hoping to have it paid off in the next 2yrs. Keep up the inspirational videos guys
We love watching your videos. We recently bought a foreclosure in cash. We just didn't want to play the credit lord game. If we would have financed, I'm guessing we would have chosen a 15 yr.
I have decided to do a conventional, 15 year fixed at 2.25. My decision was strictly based on the numbers and debt. I can comfortably afford the payment, plan on paying extra to pay it off in 7 years. I still can save. No other debt except mortgage, utilities, and food.
We just began BS3 and have a 30. Though what is motivating us, in a huge way, is that if we stick to the plan we will save a whole year of pre-tax income by paying off our mortgage at an accelerated pace. Talk about some motivation! I don't want to work a whole year of my life to pay the bank interest!
Ty for sharing your knowledge. I'm going through this right now. I was think the same y not get a 30 and pay it like a 15 or less. Being a single mom with one income. It's good to have to option to pay less.
I’m close to retirement, so I opted for a 15 year after having a 30 year. I pay 1/2 bi-weekly, so I make an extra payment each year which will shorten the life of my loan.
I love how you explain that there are shades of gray in this issue. I get that Dave needs to be absolute and resolute with his plan, but in reality there are a lot of considerations. With the current interest rate market, there is also very little saved in rates by going with 15 over 30. In the past when the interest rates have been higher, it could make way more sense to do a 15 year in order to secure a lower rate. We haven't bought a house yet. (We actually just paid off 55k in student loans today!!!). I'm not sure what we will go with between 15, 20, or 30 year mortgage. We're very disciplined, so I think the 30 is probably where we will land. But if our income goes up a bit in the next couple years as we are saving, then we might go with the 15. Either way, the amount we're looking to borrow would be manageable and less than 20% of our takehome. I'm just excited we can finally start thinking about it!
Our first house we bought in 1998 was a 30 year mrtg. We paid it off in 16 years anyway. 2nd house we bought in 2012 we used money from the sale of first house and only financed it for 15 and saved a ton and we plan on paying it off before we get to 10 years. We wanted to finance it for 10 years to begin with just wasn't sure we could swing it. Plus we wanted to pay it off before we retire. Better safe than sorry. I heard there is 50 year mrtg which is ridiculous just buy a cheaper house and mrtg it for less years. Yes Yes love bankrate.com I did the amortization tools way before purchasing and put in all the scenarios 10yr 20 yr 30 yr etc... Very helpful tool!!! Good info!!
If I had to do it all over again, our first house I would have bought a cheaper home and only finance it for 10 years. Meaning buy a home beneath our means then in 10 years buy a bigger home with down payment from sale of our first home.
I live in the Midwest as well. I like a 15 year mortgage but housing is much cheaper in Minnesota and I like projects so a house that needs a ton of work isn’t to much money. Pay down and work on it. Grind
I use a 30 and pay like a 15 if possible-as a " principal only payment" - this gives you a " cushion" for emergencies- also builds up equity faster. Then you can invest the money in the stock market or BUY MORE REALESTATE!
15 year is much better than 30! the interest rate is lower and the payments are not that much higher. People need to understand that the payments are NOT that much higher on a 15 year note. I get what you are saying about 30 year, but why pay a higher interest rate? I would never advise anyone to do a 30! we have been through job losses and we never missed a payment. You are correct, living in Texas is pretty great!
Just for information, when you refinance, you start the clock over again. Loan companies on avg call you after 4yrs to refinance and set you back. They get more interest if you refinance.
That is a great point about the 30 year mortgage. I think the 30 year is a bad idea if you're using the highest mortgage the banks will give you, however you can often pay more quickly and it gives you more flexibility to pay it off in 30 years.
Hey guys! I'm Valerie! I am new to your channel and really enjoy your channel. Me and my hubby started out with a 30 yr mortgage and stayed with it for 15 yrs. Our children are now out of college and decided to refinance with a 15 yr mortgage. We also added extra money to principal. We reside in the Kansas City Mo area. It is fairly reasonable for cost of living expenses. We plan to have our mortgage paid off in less than 10 yrs. Keep up the great work!
My parents got a 30 year mortgage and they both never made much money they were just very disciplined and it took them 22 years for them to pay off their mortgage. As I said they trident make much money to begin with so this is actually huge for them.
Great advice. We did the 30 yr loan on our house.. But , we did the same thing, We found out what the payment would be on a 15 yr loan and we paid that amount every month..It was such a wonderful day,when we paid the last payment. We also, used this same principle with any other loan, we might make..We always paid a larger amount.. Being debt free, is wonderful, especially , since we are retired. thanks for always sharing such informative info.
I'm definitely leaning towards 30, but not taking 30 years to pay it. Im in Texas and I guess its all relative, because homes are very expensive and overpriced to me. I've been pre-approved for way more than I'd feel comfortable paying. What I CAN afford are not turn-key. Since I'm single I have no desire to go into a fixer upper. Lord knows I dont trust auto mechanics, so putting my trust in a contractor is practically impossible. Especially with such a large investment. Im still fasting and praying about this decision. I maybe need to be a renter for life. I look forward to seeing the vid on you all experience going through the process of selecting your home.
Hi LaT I was afraid to purchase at first but my agent said to me Latasha, if you can purchase a home, go for it! I figured if I can afford paying rent on someone else's mortgage I can pay my own mortgage. I put in my head , I'd rather regret purchasing my own home than regret not purchasing. You have to have faith & trust that God has you. God has your back.
Don't let fear paralyze you from any decision. Purchasing a home can be such a blessing. Just make sure that you don't chew off more than you can handle. Thanks so much for watching.
At first , I thought, "But Dave does NOT recommend 30 year mortgages!!" Haha, but your reasoning makes so much sense!! I guess now I also believe in both! Thanks for sharing your thoughts!
quick question. we live in Northern California and the homes are expensive 600,000 and up.. Do you think putting down 20 percent ( 120,000 or 150,000) is a must or can we put less and just attack the loan with extra money monthly..
Living in Seattle, we made the same choice to take a 30 year mortgage even though we could have afforded the 15 year payment. But if anything went wrong and we had to live on unemployment we'd have had to go into storm mode and wipe out savings. We too felt it was a lot safer with a lower fixed obligated expense per month in case of any issue arising.
Thank you for this video! You guys are ALWAYS helpful and give great advice. I have a question regarding home buying. Currently I have a 30 yr mtg on a condo that I have had for like 6 years. I owe more on it than what it is worth. Although its affordable and I like the area, I do see myself in a slightly bigger place in the future. I get the itch to move but feel stuck due to the condo situation. I also get the itch to renovate and do some changes to the condo since I feel like I will be here for a while. In addition, I also have some student loan I am currently paying off ( should be done by next year). Any advice would be greatly appreciated. :( Stuck in Chicagoland !
Stick it out...pay off your student loan debt. It's ok to put a little money to the side to spruce up your place to give you a new feel. Thanks so much for watching.
Hi I'm new to ur channel and I Ian loving it!!! We just purchased our home and we live in NYC. We choose a 30 yr mortgage but we plan to sell another property I inherited and use some of that money to pay off half of this home and then refinance.
Hi! Im a veteran and I know you said your husband was too so I was wondering did you use a veteran home loan to buy your home? I have heard Dave Ramsey is not a fan of them. What do you think a out them? Thank u!
Love you guys!!! But why would you want to refinance? Just pay it off till it's over maybe another 3 years? why even spend the $300 dollars? Maybe it was a good move but I don't see the reason.
I'm guessing, but maybe they could lower the interest rate significantly if they refinanced. Then they would save in interest over the last few years of payments. As long as the interest saved is over $300, they would come out ahead.
I had extended warranty through a company /dealership I purchased my car they took my money and covered sqat I keep cars I use till its not fixable I didn't see benefit in it but hopefully you'll have better luck I unfortunately didn't shop around I got screwed
15 years usually has a lower interest rate, and ends up being only about 10-15% more every month, but you will save a ton. Sadly, sometimes people can only afford the 30 year mortgage, even on not so great house.
It is usually a much higher percentage difference in payment between a 15-year and a 30-year. It's at least a $500-$600 difference or a 50%-60% increase. In our case, we still came out on top because of how aggressively we've paid down our mortgage. It doesn't always work out that way for everyone. That is why it is extremely important to have a game plan prior to signing the dotted line. Thanks so much for sharing and watching.
We refinanced last year. It was only $120 more a month due to much lower interest. We also didn't have to pay any closing costs at all, we rifinanced with the same bank that we had the loan with already.
+My frugal life That may be the case for a refinance because you've paid the principle down a bit. But, if you run the numbers on a mortgage calculator the dollar amount is usually a 50% difference on a purchase because your paying the mortgage in half of the time.
I am so greatful for this message because it confirmed what I had been thinking but wasn't sure if it was a good strategy in it of itself. thank you so much.
I just love you guys! Your channel is so informative, me an my fiancé are going thru this decision. We wanted a 15 year mortgage because I have 15 years before retirement. Then we decided maybe a 30 year an then we can get more house for the same price. I'm so glad to hear this topic it will definitely play a part in our discussion about our home
We would advise to pay off your home before retirement. So, if that means that you have to purchase less home...than do it! Put yourself in a position to win. Thanks so much for watching!
Really make sense... why sign up for a 15 year MG and handcuff yourself for the next 15 years. Instead, sign up for a 30 year mortgage, pay extra monthly and if you cant in case of an emergency just pay the min. I'll go with 30 when my time come though I was really thinking about 15. But after hearing those reasonings which make sense, 30 for the win
As of like 2 yrs ago, if you don't have 20% down on an FHA loan, you will have to pay mortgage insurance for the entire life of the loan… Which can add up to so many thousands of dollars. With conventional and other types of loans, once you hit the 80% value on your home, you can stop paying for the insurance, but no longer with the FHA. So just beware of how much this can cost you...
Good for you guys and I'm sure someone is happy for you(I just don't know you that well) but I just finished the video and still haven't explained anything about a 15 years or 30 years mortgage
Chicago is my city working on buying a home in Beverly this video helped. I'm treating my home like my student loan took it for a few years paid it off before I walked across the stage! 💪 No games
We got a 25 year mortgage and paid it off in 6.5 years, now we are building a home and hoping that we can be wise and not have a too high of mortgage for this new home, which should be done in January this year it's a practical house and my raising children home not a dream house by any means! I hope to stay at home after this homes mortgage is paid off hopefully 3-5 years. Also expecting baby number 2! Thanks so much guys!
Awesome!!! Congratulations on your new arrival. Thanks for watching.
I really liked that you emphasized the importance of making a personalized decision based on your individual situation. My family lives in a very high cost of living area on the East Coast so a 30 year made the most sense for us as well. We still plan to pay off early.
30 year mortgage only makes since if you plan work for 30 years, if not 15 year pay off faster and save thousands in interest payments!
we have a 15 yr mortgage that we got a really good VA interest rate on, we are also paying biweekly and making extra principle payments on the goal is to pay off in 7-8 years ;)
Awesome!!!! Keep up the great work.
Really good video. I couldn't handle/afford a 15 year mortgage, so I went with a 30. It makes sense to go with a 30 on paper and if you can pay it off in 15 go for it. Thumbs up for a 30
Thanks so much for sharing!
We are purchasing a home in a 30-year mortgage, for the same reasons that you did. We wanted to lock in a lower payment, so we can pay more when we can, but not stress when we can't. Right now, we are building our saving accounts, and we have two children that want to serve missions in the next two years. The cost of those will be $12k each. We are encouraging them to save as much as they can to pay for it, but my husband and I will help pay. We feel it's going to be worth it for them to give time serving God and His children, and don't want finances to hold them back. We know God will magnify our efforts! Our oldest is also trying to save some for when he comes home, so he won't be flat broke after two years serving. I'm proud of the way he is hustling, pulling all the extra shifts he can as a firefighter to reach his financial, spiritual and life goals. Anyway, we plan to put all the pennies we can toward the mortgage, and as our children leave home (we have four), we'll add more and more $! It won't be in five years, but maybe ten!
We moved due to a job relocation right at the time the housing market slumped, leaving us with a house we were unable to sell due to competing with all the foreclosures and short sales. We rented out the house losing a lot of $ on it every month not to mention the upkeep and repairs between renters (we had refinanced with a large cash payout a year prior - BIG MISTAKE). After 7 years, in 2014, the market came up enough for us to sell. We never want to be in that situation again and so decided that although we were our current house right, we wanted to convert to a 15-year. We crunched all the numbers - there are a lot of scenarios and numbers to play with. Even though we could afford it, we didn't want to go over $200 extra. We saved a lot with the new rate, and our payment turned out to be a little less than $200 over what we were paying for our 30-year. For us, even though we plan to move in the distant future, we felt this was the best way for us to pay down our house and not be caught in over our heads again. We have already passed our break-even point and the house principal is well below what it was when we refinanced, just over a year ago. Although I am disciplined with money, my husband is not and we both knew this was best for us. If at any time in the future we struggle with the payment, we were assured by the lenders that we could convert the 15-year into a 30-year with no trouble. We are a double income family, but we only base our expenses off of my husband's income - learned many lessons from past mistakes.
I just love you guys 😀👍🏼
I agree on a 30yr mortgage & pay off in 10 or less.
Here in Australia when you make extra payments it automatically comes off the principle on most mortgages. My mortgage has a redraw facility for any extra money paid so in effect it's an emergency fund I can call upon but it sits in the mortgage. If the worst happens! I'm way ahead on my repayments but a few months ago my 17yr old car finally gave up & I had to buy another car. I didn't have to apply for a car or personal loan I just redrew from my mortgage & bought the car cash. I'm still way ahead on my mort & hoping to have it paid off in the next 2yrs.
Keep up the inspirational videos guys
That's great Mr. Paul. 🙌
Thank you so much for sharing and watching!
That's right, we also use our redraw facility an emergency fund.
We love watching your videos. We recently bought a foreclosure in cash. We just didn't want to play the credit lord game. If we would have financed, I'm guessing we would have chosen a 15 yr.
I have decided to do a conventional, 15 year fixed at 2.25. My decision was strictly based on the numbers and debt. I can comfortably afford the payment, plan on paying extra to pay it off in 7 years. I still can save. No other debt except mortgage, utilities, and food.
We just began BS3 and have a 30. Though what is motivating us, in a huge way, is that if we stick to the plan we will save a whole year of pre-tax income by paying off our mortgage at an accelerated pace. Talk about some motivation! I don't want to work a whole year of my life to pay the bank interest!
👍🏼 for 30. Same reasons. I'm an aggressive payer but like the comfort of a lower monthly rate.
Ty for sharing your knowledge. I'm going through this right now. I was think the same y not get a 30 and pay it like a 15 or less. Being a single mom with one income. It's good to have to option to pay less.
I’m close to retirement, so I opted for a 15 year after having a 30 year. I pay 1/2 bi-weekly, so I make an extra payment each year which will shorten the life of my loan.
I love how you explain that there are shades of gray in this issue. I get that Dave needs to be absolute and resolute with his plan, but in reality there are a lot of considerations. With the current interest rate market, there is also very little saved in rates by going with 15 over 30. In the past when the interest rates have been higher, it could make way more sense to do a 15 year in order to secure a lower rate.
We haven't bought a house yet. (We actually just paid off 55k in student loans today!!!). I'm not sure what we will go with between 15, 20, or 30 year mortgage. We're very disciplined, so I think the 30 is probably where we will land. But if our income goes up a bit in the next couple years as we are saving, then we might go with the 15. Either way, the amount we're looking to borrow would be manageable and less than 20% of our takehome. I'm just excited we can finally start thinking about it!
Our first house we bought in 1998 was a 30 year mrtg. We paid it off in 16 years anyway. 2nd house we bought in 2012 we used money from the sale of first house and only financed it for 15 and saved a ton and we plan on paying it off before we get to 10 years. We wanted to finance it for 10 years to begin with just wasn't sure we could swing it. Plus we wanted to pay it off before we retire. Better safe than sorry. I heard there is 50 year mrtg which is ridiculous just buy a cheaper house and mrtg it for less years. Yes Yes love bankrate.com I did the amortization tools way before purchasing and put in all the scenarios 10yr 20 yr 30 yr etc... Very helpful tool!!! Good info!!
If I had to do it all over again, our first house I would have bought a cheaper home and only finance it for 10 years. Meaning buy a home beneath our means then in 10 years buy a bigger home with down payment from sale of our first home.
Thanks so much for sharing!
love this channel! I have a 30 year mortgage 3.625%. I'm aggressively paying it down!😃
I live in the Midwest as well. I like a 15 year mortgage but housing is much cheaper in Minnesota and I like projects so a house that needs a ton of work isn’t to much money. Pay down and work on it. Grind
I use a 30 and pay like a 15 if possible-as a " principal only payment" - this gives you a " cushion" for emergencies- also builds up equity faster. Then you can invest the money in the stock market or BUY MORE REALESTATE!
15 year is much better than 30! the interest rate is lower and the payments are not that much higher. People need to understand that the payments are NOT that much higher on a 15 year note. I get what you are saying about 30 year, but why pay a higher interest rate? I would never advise anyone to do a 30! we have been through job losses and we never missed a payment. You are correct, living in Texas is pretty great!
Just for information, when you refinance, you start the clock over again. Loan companies on avg call you after 4yrs to refinance and set you back. They get more interest if you refinance.
That is a great point about the 30 year mortgage. I think the 30 year is a bad idea if you're using the highest mortgage the banks will give you, however you can often pay more quickly and it gives you more flexibility to pay it off in 30 years.
Hey guys! I'm Valerie! I am new to your channel and really enjoy your channel. Me and my hubby started out with a 30 yr mortgage and stayed with it for 15 yrs. Our children are now out of college and decided to refinance with a 15 yr mortgage. We also added extra money to principal. We reside in the Kansas City Mo area. It is fairly reasonable for cost of living expenses. We plan to have our mortgage paid off in less than 10 yrs. Keep up the great work!
Awesome! Thanks so much for sharing.
You're welcome. Can't wait next Sunday's topic of discussion!
Some mortgage companies also offer 20 year mortgages as well.
My parents got a 30 year mortgage and they both never made much money they were just very disciplined and it took them 22 years for them to pay off their mortgage. As I said they trident make much money to begin with so this is actually huge for them.
Oh and their house is in LA so the living cost didn't hold them back either
Great advice. We did the 30 yr loan on our house.. But , we did the same thing, We found out what the payment would be on a 15 yr loan and we paid that amount every month..It was such a wonderful day,when we paid the last payment. We also, used this same principle with any other loan, we might make..We always paid a larger amount.. Being debt free, is wonderful, especially , since we are retired. thanks for always sharing such informative info.
Thanks so much for sharing, Judy!
I'm definitely leaning towards 30, but not taking 30 years to pay it. Im in Texas and I guess its all relative, because homes are very expensive and overpriced to me. I've been pre-approved for way more than I'd feel comfortable paying. What I CAN afford are not turn-key. Since I'm single I have no desire to go into a fixer upper. Lord knows I dont trust auto mechanics, so putting my trust in a contractor is practically impossible. Especially with such a large investment. Im still fasting and praying about this decision. I maybe need to be a renter for life. I look forward to seeing the vid on you all experience going through the process of selecting your home.
Hi LaT I was afraid to purchase at first but my agent said to me Latasha, if you can purchase a home, go for it! I figured if I can afford paying rent on someone else's mortgage I can pay my own mortgage. I put in my head , I'd rather regret purchasing my own home than regret not purchasing. You have to have faith & trust that God has you. God has your back.
+mamatosh05 Thank you so much. I do need to let it go and stop trying to "fix it". I appreciate you.
Don't let fear paralyze you from any decision. Purchasing a home can be such a blessing. Just make sure that you don't chew off more than you can handle. Thanks so much for watching.
LaT How You're welcome.
At first , I thought, "But Dave does NOT recommend 30 year mortgages!!" Haha, but your reasoning makes so much sense!! I guess now I also believe in both! Thanks for sharing your thoughts!
ravesrantsreviews they said 15 year
quick question. we live in Northern California and the homes are expensive 600,000 and up.. Do you think putting down 20 percent ( 120,000 or 150,000) is a must or can we put less and just attack the loan with extra money monthly..
Cardine P pmi
Living in Seattle, we made the same choice to take a 30 year mortgage even though we could have afforded the 15 year payment. But if anything went wrong and we had to live on unemployment we'd have had to go into storm mode and wipe out savings. We too felt it was a lot safer with a lower fixed obligated expense per month in case of any issue arising.
Awesome, thanks for tuning in!
A couple years ago I saw that they were giving out 50 yr mrtgs 🙀🙀🙀 Don’t ever do that people!!
Thank you for this video! You guys are ALWAYS helpful and give great advice. I have a question regarding home buying. Currently I have a 30 yr mtg on a condo that I have had for like 6 years. I owe more on it than what it is worth. Although its affordable and I like the area, I do see myself in a slightly bigger place in the future. I get the itch to move but feel stuck due to the condo situation. I also get the itch to renovate and do some changes to the condo since I feel like I will be here for a while. In addition, I also have some student loan I am currently paying off ( should be done by next year). Any advice would be greatly appreciated. :( Stuck in Chicagoland !
Stick it out...pay off your student loan debt. It's ok to put a little money to the side to spruce up your place to give you a new feel. Thanks so much for watching.
Hi I'm new to ur channel and I Ian loving it!!! We just purchased our home and we live in NYC. We choose a 30 yr mortgage but we plan to sell another property I inherited and use some of that money to pay off half of this home and then refinance.
Hi! Im a veteran and I know you said your husband was too so I was wondering did you use a veteran home loan to buy your home? I have heard Dave Ramsey is not a fan of them. What do you think a out them? Thank u!
Love you guys!!! But why would you want to refinance? Just pay it off till it's over maybe another 3 years? why even spend the $300 dollars? Maybe it was a good move but I don't see the reason.
I'm guessing, but maybe they could lower the interest rate significantly if they refinanced. Then they would save in interest over the last few years of payments. As long as the interest saved is over $300, they would come out ahead.
My wife and I both have older vehicles that are paid off, and we were wondering if it would be beneficial to buy extended warranties for them?
I had extended warranty through a company /dealership I purchased my car they took my money and covered sqat I keep cars I use till its not fixable I didn't see benefit in it but hopefully you'll have better luck I unfortunately didn't shop around I got screwed
15 years usually has a lower interest rate, and ends up being only about 10-15% more every month, but you will save a ton. Sadly, sometimes people can only afford the 30 year mortgage, even on not so great house.
It is usually a much higher percentage difference in payment between a 15-year and a 30-year. It's at least a $500-$600 difference or a 50%-60% increase. In our case, we still came out on top because of how aggressively we've paid down our mortgage. It doesn't always work out that way for everyone. That is why it is extremely important to have a game plan prior to signing the dotted line. Thanks so much for sharing and watching.
We refinanced last year. It was only $120 more a month due to much lower interest. We also didn't have to pay any closing costs at all, we rifinanced with the same bank that we had the loan with already.
+My frugal life That may be the case for a refinance because you've paid the principle down a bit. But, if you run the numbers on a mortgage calculator the dollar amount is usually a 50% difference on a purchase because your paying the mortgage in half of the time.
I am so greatful for this message because it confirmed what I had been thinking but wasn't sure if it was a good strategy in it of itself. thank you so much.
We have the 30 but paying it like 15, ideally we want it done in 5 years but still on babystep #2.
Great video. I thought there were penalties in paying off your mortgage early...?
It depends on your mortgage contract. My mortgage doesn't have a penalty.
I just love you guys! Your channel is so informative, me an my fiancé are going thru this decision. We wanted a 15 year mortgage because I have 15 years before retirement. Then we decided maybe a 30 year an then we can get more house for the same price. I'm so glad to hear this topic it will definitely play a part in our discussion about our home
We would advise to pay off your home before retirement. So, if that means that you have to purchase less home...than do it! Put yourself in a position to win. Thanks so much for watching!
But you are paying more in interest over time. Why get a 30 year mortgage?
Thanks guys! I get so inspired hearing!
Really make sense... why sign up for a 15 year MG and handcuff yourself for the next 15 years. Instead, sign up for a 30 year mortgage, pay extra monthly and if you cant in case of an emergency just pay the min. I'll go with 30 when my time come though I was really thinking about 15. But after hearing those reasonings which make sense, 30 for the win
excellent video
Pay for your house in cash.
Love your channel! We did the 30 year for the exact same reason you all did. Although I am still a fan of the 15 year and we pay like it's a 15.
Thanks for your support, we're glad that you enjoy our videos!
Thank you so much for this video!!! We are planning on purchasing our first home in 3 years and this has helped so much!
Y'all are great! Thanks for sharing your story and helping us understand all the different factors. Discipline is key! Gazelle-like intensity
what is the new credit score for fha?
As of like 2 yrs ago, if you don't have 20% down on an FHA loan, you will have to pay mortgage insurance for the entire life of the loan… Which can add up to so many thousands of dollars. With conventional and other types of loans, once you hit the 80% value on your home, you can stop paying for the insurance, but no longer with the FHA. So just beware of how much this can cost you...
+Lindsay Ashton thx so much for the information
homes in Texas are cheap but the catch is the property taxes. Texas property taxes will eat you alive. both of my brothers live there.
Depends on what city you're in!
Property taxes can truly make or break a home buying decision. Taxes are pretty high here in the Midwest as well. Thanks so much for sharing.
you are welcome
In northern New Jersey the houses are expensive and taxes is higher.
I LOVE this episode! My husband and I are working on this exact topic. Thank you for sharing. Be blessed
Awesome, so glad to hear!
we have a 30 year mortgage. We plan to attack it when we get to that baby step
20 yr mortgage. Lower interest rate.
OMGGGGG! You guys live in Chicago?!?! Me too (Beverly area!)
Thank you guys :)
You two are incredible!
Good for you guys and I'm sure someone is happy for you(I just don't know you that well) but I just finished the video and still haven't explained anything about a 15 years or 30 years mortgage
Chicago is my city working on buying a home in Beverly this video helped. I'm treating my home like my student loan took it for a few years paid it off before I walked across the stage! 💪 No games
No games, love it!
such a smart power couple 🙌
30 year mortgage plus more money on the principal
I hear Houston's property taxes are expensive
That's my goal!
If you want to be in control of your money
STAY SINGLE !!!
luciu constant yea that makes a lot of since.
❤️