And to think I was freaked out signing our 20-year mortgage back in '03.

way I'd think about any mortgage beyond 15 years!

That way if something came up we wouldn't have a huge payment. Same effect with a built in safety plan.

Lot of new developments going in around us with floorplans better suited for us but it would mean not being next door to the kids' friends anymore and that means more than a few closets or kitchen islands.


Still...

We're 35 and 36...it's a smart move at this rate.

however I am "torn" a bit.

Seems we "buy a payment" in this day and age and once we go into a full housing recovery where rates go back up to 5-7% then it will be hard to sell your place.

Case in point is that I purchased a $300K property at 4%, my payments are right around $1250. That same house at 6% interest rate would see the same payment of around $1600 a month.

In this case if rates go back up and people purchased "too much home" and need to sell then it may be tough.

All those looking to buy a home now (which is a good idea) I'd go modest vs what you can afford in a monthly payment as when rates go back up you should expect home prices to come down...because most tend to buy a "monthly payment". Watch yourself.

Man I can remember the days of 14-18% home loans in the 70's/early 80's! That is why we had so many "modest" family homes vs McMansions.

After opening my e-cig shop. iv been pouring all my money into paying off my house. i figure if i ever become poor atleast ill have a roof over my head lol