I would advise the opposite of Eric... I'd take the 30 year note - and then if you want to you can add principle payments each month or once or twice a year.
The real math needs to be worked out with your real interest rate as the taxable net is what's important.
Having said the above it also depends on how old you are. It's absolutely ridiculous for someone that is 45 or 50 years old to owe on a 30 year mortgage! The whole key to RETIREMENT is to have your expenses low! A house payment is the biggest debt burden people have... You can live quite effectively if you don't have a house payment when you're 70!
I have a 30 year mortgage (with 23 years left of the 30) I'm 59.... but I also do not have to have a mortgage - I do it for tax purposes and I DOUBLE the payment each month just because it bugs me to owe anything.
So if you're a good money manager - and are truly diligent about paying extra on the principle - it's better to "have to" pay less per month - but only as long as you stick to your guns and pay down that principle.... thus effectively saving you the interest along the way.
Last edited by GregWeld; 06-06-2012 at 06:35 PM.
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