How do people do a 30year mortgage?

I'm debating between 1/3 to 1/2 down and getting a 30 year solely to keep the required payment non-material but I plan on paying twice the required P&I to finish it in 10 years.

I could not imagine buying a home with a 30 year loan where I need to make payments for 30 years and that payment is material enough where I cant just double it most of the time to end it quicker.

(http://www.autoadmit.com/thread.php?thread_id=5896238&forum_id=2)#50086826)

Interest rate is most of what you pay, so it matters a lot.

(http://www.autoadmit.com/thread.php?thread_id=5896238&forum_id=2)#50086832)

Its like $100 a month (comparing a 15 year vs a 30 year with payments scheduled to end it in 10-15years) for the added flexibility of basically "not paying some payments" sometimes (ie just making the normal 30 year payment)

(http://www.autoadmit.com/thread.php?thread_id=5896238&forum_id=2)#50086843)

But most of those people already had 30 and then refinanced. lol @ all these americans just buying homes maxing out their finances for the next 30 years.

I guess inflation/pay raises will ease that burden in 10-15 years, but still, a decade of being locked in like that. id killself

(http://www.autoadmit.com/thread.php?thread_id=5896238&forum_id=2)#50086912)

if i could get a treasury at 7%, id take out more loans for sure

(http://www.autoadmit.com/thread.php?thread_id=5896238&forum_id=2)#50086844)

I literally have only worked a western job full time for a max of 3 years before wanting to quit and take a year off.

Plus, my current equities plus a home paid off in 10 years = more than enough to retire anyways.

(http://www.autoadmit.com/thread.php?thread_id=5896238&forum_id=2)#50086903)

but people who did a 7 or 10 year interest only loan when rates are low are now fucked when rates reset

(http://www.autoadmit.com/thread.php?thread_id=5896238&forum_id=2)#50086831)

30-year allows people with low HHI to be homeowners

(http://www.autoadmit.com/thread.php?thread_id=5896238&forum_id=2)#50086834)

so all these people pick 30 years cuz everyone is max striving their leverage?

(http://www.autoadmit.com/thread.php?thread_id=5896238&forum_id=2)#50086849)

also fannie/freddie do not allow it so that basically means there is no market for it anyways legal or not

(http://www.autoadmit.com/thread.php?thread_id=5896238&forum_id=2)#50086906)

Also, Normal Bros just spend literally all of their money except for whatever 3.875% 401k contribution they make.

(http://www.autoadmit.com/thread.php?thread_id=5896238&forum_id=2)#50086889)

2.5k sq feet for a family of 4-6 is plenty.

edit: I only love location. That is the 1 thing I pay a premium for and I am fine with it as that is a lifestyle and family thing.

(http://www.autoadmit.com/thread.php?thread_id=5896238&forum_id=2)#50086948)

30 year means you pay less each month. 15 year means you pay a lot more each month. The advantage of the 15 year is that you pay less overall interest and build up equity faster. The advantage of 30 years is that it's easier on the wallet and often allows you a nicer house.

I have a 30 year mortgage and didn't think twice about it. These are why:

1. More money to direct to investments in the market to grow faster. Which it has.

2. Over a 30 year period you will see significant housing appreciation so your equity grows for free regardless of how much of the mortgage you're paying down. Between 1996 and 2026, the US average house price rose by 200% on average nationwide. Note that between 1966 and 1996, the average house price rose by 550-600% (which is something I didn't know till just now but it does add perspective to the current housing market).

People with a 30 year mortgage often find that after about 7 or so years, they're sitting pretty, with a monthly mortgage declining in real value while their incomes have increased, and housing and equity gains also going up, so the urgency to pay it off isn't there unless you're a nerd. And especially paying off the mortgage doesn't mean you're off the hock. Taxes and insurance still have to be paid and for the typical homeowner that was probably a third of the overall mortgage payment.

(http://www.autoadmit.com/thread.php?thread_id=5896238&forum_id=2)#50086919)

It seems people leverage as much as they can and then dont really impact that leverage for a decade in order to chase a bit more returns in the market.

But this is also why so Americans need to work for healthcare, which is just another LOL thing I will never understand.

(http://www.autoadmit.com/thread.php?thread_id=5896238&forum_id=2)#50086927)

I've known no shortage of people in HCOL who maxed out their 30 year mortgages budget to get into a decent house in a decent district and just about all of them had the five or so years of money being tight then as incomes went up and inflation went up while payments remained static, they've come out ahead and are doing well.

(http://www.autoadmit.com/thread.php?thread_id=5896238&forum_id=2)#50086944)

Ya but they were also forced to work that entire period. What if they wanted to take 6 months or a year off to enjoy life? I couldnt imagine not having that flexibility just to get a bigger home.

(http://www.autoadmit.com/thread.php?thread_id=5896238&forum_id=2)#50086952)