In response to:

Ten Reasons to Avoid a 30 Year Mortgage

WillBest2 Wrote: Apr 08, 2013 10:49 AM
I am not going to get a house to fit my family of 5 in a decent school district on a 15 year loan. That is why I did a 30. You can always pay more than you are contractually required to save on interest and shorten the loan, and that gives you the flexability to handle unforeseen events like replacing a refrigerator after 8 years rather than 15+.

Fact:  A 30 year loan at 3.625% for $300,000 has a fixed payment of $1368.
        The 1st payment is made up of $906 interest (66%) and $462 principal (34%).


1.  It will take 10.5 years before the above equation will have $684 principal and
     $684 interest.  Compare that with a 20 year loan which has 50.4% interest
     and 49.6% principal as the makeup of the first payment.  It will only take 4 months
     to be equal.  The 15 and 10 year fixed loans are even better than that.


2.  If you do not get any benefit from the interest on...

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