The hot new financing trend that’s taking the mortgage industry by storm: 30-year fixed mortgages! [Bankrate]

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  1. Veeber says:

    For the longest time I couldn’t figure out how a number of my friends were buying these expensive houses in DC and furnishing them to the hilt. I’ve been plunking along with a 15 year fixed and finances were tight. Now I know. I kindof feel bad that some of them are trying to downsize now.

  2. kc2idf says:

    Hey! I have one of those!

    I bought my house a little over 4 years ago with a fixed-rate 30-year mortgage, and couldn’t be happier. I bought it during the hot market that lead to the ARMs race that lead to the subprime meltdown, and opted for safety over all else. I know roughly what I have to pay each month (taxes fluctuate, so the escrow payment does likewise) and I don’t worry about a rise in interest rates or a balloon payment over the horizon.

    Of course, I also bought a house that was within my means. That means it’s 90 years old and I had to get my hands a little dirty with upgrades (new plumbing, new wiring, etc), as did the previous owner. More people should do this; it won’t kill you.

  3. XTC46 says:

    @kc2idf: so you are saying that people should make intelligent financial decisions, only buy things they can afford, and not be afraid to get their hands dirty to clean up the biggest purchase they will possibly ever make?

    thats just crazy talk.

  4. Haltingpoint says:

    @kc2idf: Correction…new plumbing and new wiring could very well kill you if you’re not properly trained. When in doubt hire a professional, you’ll be thankful when you don’t have to pay to repair your own damage.

  5. homerjay says:

    Pfft– I had one of those BEFORE they were cool.

  6. AuntieBubbles says:

    OOHHHH!!! That’s HOT! I want one!

  7. HawkWolf says:

    I think ‘get hands dirty’ means ‘don’t be afraid to actually get work done on your house’, not ‘do it yourself’. But what do I know?

  8. schiff says:

    HALTINGPOINT:
    If you die performing plumbing upgrades you should probably lock yourself in a closet.

  9. lockdog says:

    @schiff: Depends on your ability to distinguish cast iron drain pipe from cast iron gas lines before using a torch to loosen a stuck fitting…at least that was the quickest way to kill a DIY plumber I could think of.

  10. humphrmi says:

    Man it’s good to see a post about people doing things right for once. So many “Waaa! I bought more house than I could afford and ARMed it and now I’m toast! Help bail me out, Big Government!” comments and posts it’s dizzying.

    /me started with a 30-year, 7-7/8 fixed… refied twice, my latest is a 20-year, 5.25 fixed. And in all three I put (you’d better sit down for this) equity into my home..

    I don’t make huge money. I bought what I could afford. When we moved in, a three bedroom house was fine for me, my wife, and one kid. Now we have three kids, and while I’d like a bit more room, I don’t think we regret a damn thing. I just took my kids to DisneyWorld this summer and paid cash. (Well, we paid the credit card company cash, in full, after it was all over and they gave me thousands of miles…)

    Eh, enough ranting. Good to see common sense making a comeback.

  11. Haltingpoint says:

    @schiff: In addition to Lockdogs death scenario, a crappy DIY electrician could very well electrocute himself while doing a crappy DIY plumbing job too. Sooo many possibilities!