No. of Recommendations: 1
You're right, AJ; the decision is strictly situational.

My brother, age 64, is going to buy a house for $89,900. He's putting 30% down.

69930 x 3.00 = $294.83 (per month, amortized over 30 years)

The payment is far cheaper than rent for a comparable house. In his situation, it doesn't matter if he ever pays off the mortgage. However, had he wanted to pay off the mortgage, a 5 year ARM would serve him well, as he can easily afford the payment.

69930 x 2.375 = $1,237.22 (payment required to pay off in five years)
Print the post  

Announcements

Useful Resources
Our Home Center has all you need to make buying and owning a home a great experience. Get or refinance a mortgage and much more!
Buying/Selling a Home FAQ

Mortgage Professor
Offsite resource for mortgage questions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement