patrick.net

Thanks for the thorough answers. Considering the spread isn't very large, it may make the most sense to go with the 30 yr and then just pay a little extra each month/year, if we wind up wanting to pay it off early.

I am refinancing now. 30 yr fixed conforming jumbo at 4.875. 15 year conf jumbo is 4.25.

I picked 30 yr. My situation is like SF Ace. I would rather have more flexibility and ability to invest elsewhere. And there's a reasonable chance over the next 30 years that we would have a bout of inflation, thereby reducing my debt in real terms. And, I expect to work for 25 more years, so the tax deduction will be valuable. And the 625 bp is not such a big gap. 5 years ago the difference was bigger so then a 15 yr made more sense.

for someone who might retire sooner, the 15 year can be better, because in retirement you'll have less income and therefore less need for the tax deduction.

Assuming 5% after-tax investment returns of course.

For me @33 with growing family and many proven opporuntity to earn 9% or more,

In what looks to be a near-zero-interest-rate era, you guys seem awfully confident about your investments.

Over here in zero-interest Japan, I pay more in monthly bank transfer fees than I get back in interest, and the stock market is hardly a safe place to put money.

The safest investment possible is early repayment of one's debt. I'm about to completely pay off the home renovation loan that I still owe about $16,000 on at 3.475%. There's no way I could safely earn anywhere near that much holding onto my cash.

IMHO go with the 30 year, and pay it off as if it were a 15 year.

EastCoastBubbleBoy says

IMHO go with the 30 year, and pay it off as if it were a 15 year.

Amen, brother!