Re: advice for first time home buyer?
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Go 30 year on the mortgage, it'll give more flexibility without much more cost.
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If he were gonna go 30, these wouldn't be the reasons to do so. Go 15, unless you want to "leverage" your home, which is stupid IMO.
The flexibility should be a non-factor as you should be able to afford payments on 15 year loan if you can on 30 year loan. If you can't, then you are buying too much anyway. And it's a lot bigger cost to go 30, unless again, you are doing it for leverage.
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Um... Explain how its a bigger cost. You make the same amount of payments you'd make on the 15, but if you decide to not make an extra payment... you don't. Assuming the rate on the 30 is no higher, its essentially the exact same loan when you apply an extra payment to principle.
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That is correct but usually the interest rate is a tad better on a 15 yr fixed.
I also disagree with if you can't afford a 15yr you can't afford a 30yr. It is just a matter of a opinion though.
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