Question: Obviously I mean the term of the home loan would be shorter aka 15 yr > fixed rate vs 30yr fixed and hence the monthly payment higher – not > because I was getting a higher interest rate. 
> By wise, what advantages do I get by getting the 15 yr vs getting a 30 > yr with no early payoff penalty and make additional payments when I > can. Wouldn’t I have more flexibility? Are points and “stuff” higher > on a 30yr than a 15?
> Let’s say for instance that I lose my job next year – I could stop > making additional payments and the monthly on the 30yr would be > lower/easier. Sure would suck to lose the house because I couldn’t > make the 15 yr payments but could have handled the 30yr payments.
> Let’s say inflation comes back with a vengance and the interest rates > on CDs go higher than the interest rate on my mortgage? Then I could > stop making the additional payments and pay back the loan with > increasingly worthless dollars and instead of making additional > mortgage payments. Heck the last 10 years in the term could be > practically free! I could put that additional payment money into > hard assets like oh say hostess twinkies.
Answer: JJ your right on with the economy the way it is. Long as you can make the payments with a pay cut or a lesser job than you have now. Buy a smaller house, not a larger one. Economy isnt getting better as the fed is saying. Fuel cost are going up, got to heat and cool it. There is going to be more unemployment. Interrest rates are going to continue to go up. Wait till this fall, numbers not good. Not a pretty picture.
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