Quote:
Originally Posted by turbo6bar
Exactly. The only penalty for going with 30-yr fixed is the slightly higher rate. If you're feeling good, make payments as if it were a 15-yr mortgage. If things are tight, revert back to regular payments. It's always good to have options....(
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That's exactly what I did on my primary residence. Got a 30-yr when my salary wasn't as much, and began by paying an additional $100 in principle each month, then increased the additional principle amount as my circumstances changed. Paid the loan off in 12 years, but always had the option of simply paying the original 30-yr amount if things got "tight"...fortunately, that didn't happen. The difference in interest rates between the 30 and 15 were insignificant in the big picture, and the flexibility gave me peace of mind.