Flexibility in Mortgage Loans Requires Discipline

A buddy of mine just purchased a car on a 72 month loan or six years for those of you that are as mathematically challenged as I am! That is a pretty serious commitment. His stated purpose in obtaining the loan was to get low monthly payments and then pay extra every few months. Many people take the same approach with loans on their home. They use flexible mortgages to get the lowest monthly payment with the full intention of making extra payments when they have money to pay down the debt. This approach makes sense in just about every possible way with one exception. You must be the discipline to make the additional payments. If you get a 50 year mortgage and never make the additional payments, it is probably going to be a pretty bad deal. Make sure you objectively evaluate how you will really act with money in the future.