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Originally Posted by redrider  I agree with misslola about the mobile home, however, I disagree on the 15 year loan vs. interest only. If you apply extra funds to the principal like I mentioned before, your payments are still lower and the principal will decrease just about as fast as if you got a 15 year loan, since most of the payments you make on a fully amortized loan for the first 10 years goes towards interest, not principal anyways. Another deciding factor in purchasing is how long are you planning to live there? If you are talking short term (a few years) versus longer, then you may not have enough equity to sell it without a hardship;however, if you are planning to stay there longterm, then interest only loan may be your answer. |
I have to agree with that. The problem is, most people say they are going to pay extra every month and then don't. The appeal of a 15 year loan is that you HAVE to budget in that amount. But yes, if you do fully plan on budgeting extra every month for your payment to pay down the principal, that is a great option.