Quote:
Originally Posted by Kevsh
And consider the suckers that have 25 and 30 year mortgages. Just do the math on how much that home will end up costing you? It's robbery.
Smart people don't go and get a $500K / 25-year mortgage just because the bank pre-approves them for that much. They get something more reasonable instead, save up a significant down payment and then getter a shorter-term mortgage and pay off their home sooner = total cost of ownership is FAR less (again, do the math).
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I went with a longer term mortgage that allows various faster prepayment options that I can use if I want to. That way I am locked into the lesser payments in case I am short on cash or have a bad year, but I can pay off my mortgage much quicker when I have extra money lying around.
For instance, I can increase my weekly payments by up to 20%, and can also pay lump sums of up to 20% of my mortgage total per year without any type of penalty.
It's nice to be able to log onto my internet banking account and pay off a huge chunk of my mortgage without even having to talk to a banker.
Weekly payments are also the best choice for anyone considering a mortgage. Right away that says you money on interest compared to monthly payments.