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From: dave@cylixd.UUCP (Dave Kirby)
Newsgroups: net.taxes
Subject: Re: 15 versus 30 Year Mortgages
Message-ID: <870@cylixd.UUCP>
Date: Thu, 20-Mar-86 10:03:26 EST
Article-I.D.: cylixd.870
Posted: Thu Mar 20 10:03:26 1986
Date-Received: Tue, 25-Mar-86 04:50:09 EST
Reply-To: dave@cylixd.UUCP (Dave Kirby)
Organization: RCA Cylix Communications , Memphis, TN
Lines: 24


Some more considerations:

A 15-year mortgage is fine IF

    (1) You plan to keep your house forever, or to sell it eventually
    on a new loan.

    (2) You are willing to live in a lesser house than you could
    qualify for with a 30-year mortgage.

    (3) You believe that the equity gained through amortisation will
    be anywhere near significant in relation to the equity gained
    through inflation.

BUT if you want to be able to sell your house easily, get an assumable
30-year fixed-rate loan at the current low interest rates. FHA loans
are especially good, since the buyer need not qualify in order to
assume the loan. Part of the ease in selling a house involves the
availability of financing for the buyer, and you might have trouble
finding people who are attracted to 15-year mortgages.

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Dave Kirby    ( ...!ihnp4!akgua!cylixd!dave)