Need some advice please!

**LexTysMommy** · 07-30-2007, 03:19 PM

Here is some background:

I have 2 mortgages. The total for both is $138,000 left to pay. I have had them for almost 3 years. I have gotten divorced since and gotten the house. The interest on the 2nd mortgage is very high and they both are a adjustable APR so I am refinancing into one mortgage for lower APR.

I pay insurance and taxes seperate and like it that way actually. I do home daycare so my income is not always consistant and it is just me with 2 kids in the house. I pay $1122 a month now for both mortgages.

The mortgage company I am going with is offering me some choices.

*30 year loan $1050 a month.
OR
*20 year loan $1450 a month.
OR
*10 year loan $1700 a month.

All fixed rate and all same APR. Would you get 30 year loan and pay extra each month or get the 10 year loan and Just pay that? Does it make a difference if I lock into a 10 year loan and pay $1700 a month opposed to getting 30 year loan and paying an extra $650 a month?

If anyone knows any calculators I could use I could figure this out or any advice woudl be great. Thanks!

**cheappearls** · 07-30-2007, 03:52 PM

I don't see what the difference would be but then I've never had a mortgage before either.

I guess it might look better with paying off a longer loan in a short period of time but really, if you KNOW you can afford the $1700 a month every month, might as well go for the 10 year loan.

**Cricketlegs** · 07-30-2007, 04:05 PM

http://www.whatsthecost.com/snowball.aspx?country=us

Try typing them in here with the rates of interest and see how much extra you would be paying.

**Dancing Lotus** · 07-30-2007, 04:08 PM

If it were me I would take the 30 yr and pay extra when I could. Since your income is not always dependable I would not want to get it to deep. With your home it is better safe then sorry.

**FrugalMomof3** · 07-30-2007, 07:23 PM

I would take the 30 year loan and pay more towards principle every month, since you said your income every month vary I wouldnt want to take in too much.

**Michelle68** · 07-30-2007, 07:29 PM

I'm with AnnK on this. While most financial experts recommend a 15 year loan, I think because you're a single parent with your own business, it would be better to go with the 30 year mortgage and pay extra.

--Michelle

**Jaded** · 07-30-2007, 08:49 PM

I'm jumping on the 30 year bandwagon also. I could have refinanced my loan, but I want to keep it low so I can pay extra when I want to, and not when I can't. I also don't have insurance or taxes in my loan, and like it that way. That way, I can pay the loan payment, which is pretty low, and if I can't afford to put the money away that month for Ins./Taxes, I can double up when I do.

**Libby** · 07-30-2007, 09:29 PM

I dont have my own home yet but just reading that and knowing what Ive learned here from the village, take the 30 yr one, pay the minimum and pay extra only when you can that way you wont be struggling superhard if an emergency strikes.

**Grayce** · 07-31-2007, 02:55 AM

Because you are in the situation where you have an inconsistant income I would take the 30 year because it has a lower payment. You could always pay extra on it when you have extra $.

**LexTysMommy** · 07-31-2007, 09:23 AM

Thank you to everyone for your advice. It makes alot of sense and as much as I would LOVE to haev a 10 year loan paid off early..the 30 year loan makes much more sense hearing it from someone other then myself.

**pepper1** · 07-31-2007, 02:03 PM

Good luck and maybe you could get the 30 year mortgage paid off in 10 years that would be awesome but this way you don't have to stress over it just pay extra when you have it and if you don't have extra don't pay it