Reply #5: Omigosh YES! [View All]

[eileen from OH]

Don't be tempted by the slightly lower variable interest rates. Krugman warned months ago (and again just recently) that rates are going to go up. I remember the inflation years when they got as high as 14%.

Also, get your mortgage for as long a period as they will let you. Yes, when you sit down and figure out the interest, it'll be higher than the principal. But unless you plan on staying in that house forever and only paying the exact payment, it really doesn't matter. Get as low a monthly payment as possible and then always pay more than you need to and apply it to the principal. That way, if things are tight, you don't have a high payment. And if you have a good month, you can pay off more. We ALWAYS pay at least $50 more than the payment. It's amazing how that adds up over 15-20 years.

Best of luck to you - being a homeowner is great (also a lot of work!)

eileen from OH