Comments on: Why a 50-Year Mortgage is a Bad Idea http://www.getrichslowly.org/blog/2006/05/19/why-a-50-year-mortgage-is-a-bad-idea/ personal finance that makes cents Tue, 07 Oct 2008 16:04:21 +0000 http://wordpress.org/?v=2.5.1 By: VinTek http://www.getrichslowly.org/blog/2006/05/19/why-a-50-year-mortgage-is-a-bad-idea/#comment-90 VinTek Fri, 19 May 2006 16:07:26 +0000 http://www.getrichslowly.org/blog/2006/05/19/why-a-50-year-mortgage-is-a-bad-idea/#comment-90 This is where understanding the numbers really helps. If any of you own the program Excel, it comes with a mortgage amortization template that crunches the numbers for you. BTW, the kind of logic outlined above also clearly demonstrates why stretching out credit card debt to 30 years is a really bad idea. Although stretching out the debt period wouldn't increase your interest rate, the reduction in monthly payments would not make the effort worthwhile. Also, negative equity is possible even if you're paying off part of the principle. This happens when housing prices decline, leaving you owing more than the house is actually worth. This is where understanding the numbers really helps. If any of you own the program Excel, it comes with a mortgage amortization template that crunches the numbers for you.

BTW, the kind of logic outlined above also clearly demonstrates why stretching out credit card debt to 30 years is a really bad idea. Although stretching out the debt period wouldn’t increase your interest rate, the reduction in monthly payments would not make the effort worthwhile.

Also, negative equity is possible even if you’re paying off part of the principle. This happens when housing prices decline, leaving you owing more than the house is actually worth.

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