Buying a home in your 30's

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Forum -> Household Management -> Finances

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amother

Aubergine

Tue, Jul 19 2016, 6:27 pm

BH DH and I are looking to upgrade our home. We currently own and have about 15 years left on our mortgage. We found a new home that would meet our needs and with the profit from selling our current home be able to use that as a nice sized down payment on the future house.
I don't think we could afford a new 15 year mortgage but the thought of paying off our new home until we are almost in our 70's is scaring me!

Any words of advice? Will cash flow be easier once all kids are out of school and married off in 20 years? And I can start paying off more later in life? Will I feel nice and young still in 30 years?

How do people pay a mortgage their whole life?

Raisin

Tue, Jul 19 2016, 6:30 pm

Do you think you would want to downsize your home when you are retired?

Jeanette

Tue, Jul 19 2016, 6:31 pm

Many people are still paying mortgage in their old age, especially if they refinanced to make weddings etc. Some who never managed to buy are still paying rent.

If you buy now you have the option of selling later and downgrading when you no longer need a big house. If your house goes up in value you can sell and make a nice profit even if you still have 15 years left on your mortgage.

amother

Salmon

Tue, Jul 19 2016, 6:34 pm

You can compromise and do a 20 year loan. The rate will be between a 15 and 30 year. what's more if you have a little extra money that you can pay each month, you can knock a year or 2 of the 20 year loan. Hatslacha!

amother

Blonde

Tue, Jul 19 2016, 7:27 pm

I'm not sure if mortgages work the same way everywhere, but where I live you are only locked in for 5 years at a time. After 5 years, you can refinance and change the terms of your mortgage. I'd say go for the 30 year and re-evaluate in a decade (or two!). Most people I know do pay a mortgage all of their life, but they also build substantial equity which their children later inherit. My parents bought their home for around 200 000$ when they were in their 30's. They remortgaged multiple times in order to pay for weddings. They are now in their 60's and have a 600 000$ mortgage, but their home is now worth 1.4 million! Interest rates have plunged, so their monthly payment has remained similar despite rising inflation (they do have two tenants though).

Amarante

Tue, Jul 19 2016, 8:54 pm

Most mortgages allow you to pay off more than the minimum. Even paying every two weeks lessens the term f a mortgage.

I've paid more some months and the minimum other months.

Once the kids are out of the Jude, you can decide whether you want to downsize and spend less n housing.

TwinsMommy

Wed, Jul 20 2016, 12:25 am

we're in our mid 40's and have never (yet?) bought. We thought about it, but I really like being able to call the landlord if something is broken rather than come up with $$$. At this point, since we'll be paying rent (or mortgage payments) in our senior years anyway, (no retirement savings, we'll just keep working till we die I guess) we'll probably continue to rent forever. But we're in a place where normal homes are available for rent--- I'm aware that's not true everywhere.

amother

Plum

Sun, Aug 21 2016, 9:06 pm

Hi I didn't read all the responses for this. But maybe you can rent out part of your home. Maybe this will help you to pay the mortgage sooner.

finprof

Sun, Aug 21 2016, 9:17 pm

As long as there is no prepayment penalty written into your mortgage contract there is no reason you can't repay it in 20 or 15 yrs even if it is a 30 yr mortgage.

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