Re: Help me settle this 20 yr fixed vs 30 yr fixed mortgage debate
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assume a rate of 6.125% on both and a $150k loan balance.
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This is a bad assumption.
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What rate of return on your investment would be needed to outperform the 20 yr fixed after taxes at the 10 yr and 20 yr marks by investing the difference in P+I of the 20 yr and 30 yr?
[/ QUOTE ]I'm not sure what you are asking. However, if you think you can earn better than the mortgage rate somewhere else, you would be better off with the 30-year because that gives you more money to earn that higher rate with than had you got the 20-year.
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