I unfortunately take summer school, but I love the warmth. I like being able to wear cute dresses, feel totally comfortable outside, and swimming is great. Everything outdoors is so much better in summer.
Another thing to think about is where else the extra money might go if you opt for the 30-year over the 15. My wife and I recently refinanced our primary residence and got 3% rate on a 15 year loan. However, after we closed I had a little buyer's remorse, because we have a rental property that we are paying 6% and can't refi due to lack of equity. If I had taken the 30-year on the primary residence and paid a LITTLE higher interest, I could have used the extra money to pay down the rental property, and when it was paid off I could have then redirected money that is servicing that loan back to the mortgage on the primary residence. They'd have both been paid off faster, and we'd have saved more money. Even if you don't have a rental property like us, a fifteen year mortgage is money you aren't putting in your IRA or 401K. The money you save with the shorter mortgage may be lost by NOT investing the difference in the market.
Summer is my all-time favorite season, as I'm sure it is for many people! For the past eight years or so I've had a "Summer List", which has every single activity I would LOVE to do in the summer- so that when I'm bored or trying to think of an activity for the weekend I can simply look at the list, see what I haven't done yet and get to it! Summer Bucket Lists have become more popular in the last few years, and some activites that are always included on mine are:
-Weekend trips to nearby towns to explore, eat and hang out with friends.
-Strawberry picking
-Camping (of course!)
-Hiking, biking, swimming and picnicking.
-Learn to cook foods I love to eat in restaurants but don't know how to make at home (Pad Thai, Chicken Tikki Masala and Fish Chowder are just a few).
Summer is the ultimate time in my mind to learn new skills, try out fun activities and really push the boundaries of everyday life!
Not only will off the beaten paths benefit you during your travels and your vacations, they benefit you in life as well. Taking the road less traveled usually sets you apart from your peers and helps you draw the benefits of that distinction.
I am so happy you wrote this article the way you did and for the choice you, the author, made because it sets a good example. My opinion is to ALWAYS CHOOSE THE 30-YR OPTION.
Why? For exactly the reasons you mentioned above: You can always pay the 15-yr amount AND you're able to withstand a down-turn in the economy.
If you had asked this question of me five years ago, I would have said "it depends." I had a 15-yr mortgage and paid my house off early. BUT, I have since watched people I know and love have to sell their property because they were in a short-term loan, had equity but lost a job. No lender would refinance them but since they could no longer afford the payment, they were forced to sell a home they wanted to keep. This just heaped loss upon loss.
We choose the 30 year mortgage for now so that we could pay more when we feel we truly have it. The goal is to pay it off but going with the 15 though it would have be a lower interest rate we just couldn't cover it. We plan to refinance in the coming years and go with the 15 only if the rates are lower or the same as we currently have. If not we'll just make larger payments toward principle.
Definitely camping! Mushroom hunting, geocaching, hiking, picnics, bike rides, canoeing, fires at the park...basically any free/cheap activity outdoors.
Get a 30 year mortgage but pay it down in 15 years. That way you get the best of both worlds. You pay an effective interest rate that is lower than your 30 year, you're done in 15 years and you have no obligation to make higher payments if something comes up. It just takes more diligence.
You aren't taking the replacement costs of a new fuel cell into account. Nissan Leaf's , for instance, is expected to last only 100k miles and cost $10k to replace. That's $.10 per mile in "fuel costs" on top of the cost of electricity. My husband's Yaris gets 40mpg, or a hair more than $.09 per gallon at $3.75/gal. So the Leaf loses on that account.
Plus, you are badly underestimating the environmental costs of manufacturing a full-electric car versus a traditional car. I believe that it takes the Leaf something like seven years to break even with an average sedan in terms of total environmental impact. It would take much longer to catch up to the Yaris.
I would thoughtfully apply it (or at least 99.9% of it!) to wherever we happen to be in our overall financial plans. Debt, savings, retirement, house, investment, with giving and reasonable fun things along the way. Since we have a decent idea of what our overall priorities are with money, my hope is that we would use any windfall accordingly!
I think a lot of the danger comes in not having much of a financial plan at all (I didn't for years) and then the temptation is huge to think only of short-term pleasure when unexpected money comes along. Also, I mismanaged some money from an inheritance when I turned 18 and I sincerely hope my regret from early mistakes would cause me to handle a second windfall with a lot more wisdom!
Smoothies and a cool house after I've been out in the heat (can't do ice cream, unfortunately -- that would be better!), bare feet on the kitchen tiles and sundresses all summer, the pool a few times, yummy food from the garden, and a trip to the ocean with hubby if I can afford it! :)
Camping is a great cheap way to entertain yourselves on the weekend. Most state or national parks have extremely low fees for campsites, and if you are near a place like the Appalachian trail it doesn't cost anything except the price of bug spray and granola bars to go camping for a weekend. Great list!
I agree with all the methods above. They may not apply to everyone, but it is a place to start. One key side job is online marketing, which is growing so fast and anyone can be successful! It will definitely be the fastest source of income for stay at home parents!
You can find out more about it by watching a few short videos: www.ownyoursuccess.us
My daughter and I are headed to the mountains of NC to pan for gold! It should be great! Also we are doing our usual trek to Folly Beach and visiting our favorite hot dog place, Cosmic Dog!
I love to go to the mountains and go hiking in the summer. It gets so hot here and it's a nice change to see some elevation and cool off.
I love going to the library. It's often cooler than being outside during the hottest parts of summer and I find new books after finishing my last one.
I unfortunately take summer school, but I love the warmth. I like being able to wear cute dresses, feel totally comfortable outside, and swimming is great. Everything outdoors is so much better in summer.
Another thing to think about is where else the extra money might go if you opt for the 30-year over the 15. My wife and I recently refinanced our primary residence and got 3% rate on a 15 year loan. However, after we closed I had a little buyer's remorse, because we have a rental property that we are paying 6% and can't refi due to lack of equity. If I had taken the 30-year on the primary residence and paid a LITTLE higher interest, I could have used the extra money to pay down the rental property, and when it was paid off I could have then redirected money that is servicing that loan back to the mortgage on the primary residence. They'd have both been paid off faster, and we'd have saved more money. Even if you don't have a rental property like us, a fifteen year mortgage is money you aren't putting in your IRA or 401K. The money you save with the shorter mortgage may be lost by NOT investing the difference in the market.
My credit union offered a 20 year mortgage which I'm on schedule to pay off in 15 years.
During tight months, I was glad to not have to make the extra prepayment. But I'm thrilled with the thousands I'll be saving in interest.
Love the longer Summer Days! More time to enjoy the water park.~ I love the smell of chlorine. Summer + gardening = Happiness
Summer is my all-time favorite season, as I'm sure it is for many people! For the past eight years or so I've had a "Summer List", which has every single activity I would LOVE to do in the summer- so that when I'm bored or trying to think of an activity for the weekend I can simply look at the list, see what I haven't done yet and get to it! Summer Bucket Lists have become more popular in the last few years, and some activites that are always included on mine are:
-Weekend trips to nearby towns to explore, eat and hang out with friends.
-Strawberry picking
-Camping (of course!)
-Hiking, biking, swimming and picnicking.
-Learn to cook foods I love to eat in restaurants but don't know how to make at home (Pad Thai, Chicken Tikki Masala and Fish Chowder are just a few).
Summer is the ultimate time in my mind to learn new skills, try out fun activities and really push the boundaries of everyday life!
Not only will off the beaten paths benefit you during your travels and your vacations, they benefit you in life as well. Taking the road less traveled usually sets you apart from your peers and helps you draw the benefits of that distinction.
I am so happy you wrote this article the way you did and for the choice you, the author, made because it sets a good example. My opinion is to ALWAYS CHOOSE THE 30-YR OPTION.
Why? For exactly the reasons you mentioned above: You can always pay the 15-yr amount AND you're able to withstand a down-turn in the economy.
If you had asked this question of me five years ago, I would have said "it depends." I had a 15-yr mortgage and paid my house off early. BUT, I have since watched people I know and love have to sell their property because they were in a short-term loan, had equity but lost a job. No lender would refinance them but since they could no longer afford the payment, they were forced to sell a home they wanted to keep. This just heaped loss upon loss.
Be smart...just make extra payments.
Ree ~ I blog at EscapingDodge.com
We choose the 30 year mortgage for now so that we could pay more when we feel we truly have it. The goal is to pay it off but going with the 15 though it would have be a lower interest rate we just couldn't cover it. We plan to refinance in the coming years and go with the 15 only if the rates are lower or the same as we currently have. If not we'll just make larger payments toward principle.
Definitely camping! Mushroom hunting, geocaching, hiking, picnics, bike rides, canoeing, fires at the park...basically any free/cheap activity outdoors.
Get a 30 year mortgage but pay it down in 15 years. That way you get the best of both worlds. You pay an effective interest rate that is lower than your 30 year, you're done in 15 years and you have no obligation to make higher payments if something comes up. It just takes more diligence.
I don't think DIY is for me during home renovation. I don't think I have enough skills for DIY and I'd rather get some professionals or experts.
We love having barbecue party over the backyard during summer while the kids are playing in the pool or just running around.
You aren't taking the replacement costs of a new fuel cell into account. Nissan Leaf's , for instance, is expected to last only 100k miles and cost $10k to replace. That's $.10 per mile in "fuel costs" on top of the cost of electricity. My husband's Yaris gets 40mpg, or a hair more than $.09 per gallon at $3.75/gal. So the Leaf loses on that account.
Plus, you are badly underestimating the environmental costs of manufacturing a full-electric car versus a traditional car. I believe that it takes the Leaf something like seven years to break even with an average sedan in terms of total environmental impact. It would take much longer to catch up to the Yaris.
This could also be titled, "Do you hate yourself?" Just kidding! :) It does sometimes feel that way when I'm neck-deep in a project, though.
i love biking in that time right around sunset.
I would thoughtfully apply it (or at least 99.9% of it!) to wherever we happen to be in our overall financial plans. Debt, savings, retirement, house, investment, with giving and reasonable fun things along the way. Since we have a decent idea of what our overall priorities are with money, my hope is that we would use any windfall accordingly!
I think a lot of the danger comes in not having much of a financial plan at all (I didn't for years) and then the temptation is huge to think only of short-term pleasure when unexpected money comes along. Also, I mismanaged some money from an inheritance when I turned 18 and I sincerely hope my regret from early mistakes would cause me to handle a second windfall with a lot more wisdom!
I love barbecues, picnics, hiking, camping...just the chance to do all the outdoor activities that are hard to do in the colder months.
Smoothies and a cool house after I've been out in the heat (can't do ice cream, unfortunately -- that would be better!), bare feet on the kitchen tiles and sundresses all summer, the pool a few times, yummy food from the garden, and a trip to the ocean with hubby if I can afford it! :)
Camping is a great cheap way to entertain yourselves on the weekend. Most state or national parks have extremely low fees for campsites, and if you are near a place like the Appalachian trail it doesn't cost anything except the price of bug spray and granola bars to go camping for a weekend. Great list!
I live in AZ, so my favorite summer activity is sprinting from my air conditioned car to my air conditioned home/workplace! :)
I agree with all the methods above. They may not apply to everyone, but it is a place to start. One key side job is online marketing, which is growing so fast and anyone can be successful! It will definitely be the fastest source of income for stay at home parents!
You can find out more about it by watching a few short videos: www.ownyoursuccess.us
My daughter and I are headed to the mountains of NC to pan for gold! It should be great! Also we are doing our usual trek to Folly Beach and visiting our favorite hot dog place, Cosmic Dog!
I love making the switch from drinking hot coffee to drinking iced coffee.