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Originally Posted by skippy3481
Pgardn, I can tell you why i went with a 30 year fixed. First we are locked into a very nice interest rate with no prepayment penalties. We always planned on a 15(to pay off in about 10), but we recieved a nearly identical interest rate on the 30 as we did the 15. So we went with the 30 which offers more flexibility in case of some unforeseen economic issues. Typically we just double our mortage payment every and send that in paying the principal off quicker. But in case of a crunch, we have a lower payment at a very nice interest if we need it.
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Aha.
Understood.
But if you double your payment you are making, you are still paying much more than you would on a 15 year, but you have the flexibility of paying a much smaller amount if you get bonked on the head or something.
I must say all of this house stuff is very interesting as I have not been into this in a long time.So thank you to the people who work in these areas who have posted.
I think the Fed has signaled that interest rates are going to change. When T-bills and the current lending rate are so far apart something is out of whack. Almost a bit of deflation it seems based on what I have been hearing/ reading. It apparently means bring the lending rate down, inflation is not a problem.
I have no background in economics so corrections are appreciated (never had to take a class in anything dealing with money, a hole in the old educational system). Most of the general stuff makes sense to me, but all the little particulars are a bit confusing. And the guys/gals that write on this all seem to have their own little views. One fella is suggesting a complete disaster based on the dollar losing value compared to other currency. Seems the economic people have their own little pet disaster theories. very interesting, and confusing at times.