[net.invest] 15 versus 30 Year Mortgages

sjc@lambda.UUCP (Sandy J. Cifrodelli) (03/08/86)

I would like some opinions on 15 versus 30 Yr Mortgages.
If I refinance at current rates,
I can afford both.
What are the pros and cons?
What is the tax effect of the 15 Yr loan in terms of what
I can write off on my 1040?

Thanks
Sandy

ark@alice.UucP (Andrew Koenig) (03/09/86)

If the interest rate is the same for a 15-year and 30-year term,
take the 30.  No contest, because you can always pay off the
30-year loan in 15 if you want to, so the longer term gives you
more flexibility with no disadvantages.

If the rates are different, you have to decide what the
longer term is worth to you.