Take Out A Big, Long Mortgage In Fort Lauderdale

I try to give the best advice I can to my clients anytime I speak to someone about a mortgage in South Florida.  I feel you never want too much money tied up in any one asset.  With interest rates at historic lows you can put your money to better use along with making sure you have 6-12 months of money set aside in reserve, make sure you are always maxing out your retirement, and the list goes on.

The reason I think for most it is better to take out a 30 year fixed rate mortgage even though the interest rate is a little better on a 15 year fixed is because you can always make a 15 year fixed payment on a 30 year fixed mortgage but you can’t make a 30 year fixed payment on a 15 year fixed mortgage.  The future is too unpredictable and you never know if you need to replace something, put a new roof on, etc.  There are additional costs that come with owning a home.

The article below from the New York Times points out how people just aren’t saving enough to get their 401(k) match which is crazy.

Of the two million 401(k) participants evaluated, 39 percent were not saving enough to receive their employer’s full matching contribution (or they weren’t saving at least 5 percent of salary in companies with no match), up from 33 percent in 2008. Younger workers are even more likely to give up the free cash: 47 percent of participants under age 40 did not save enough to receive the full match, compared with 53 percent of workers under the age of 30.

http://bucks.blogs.nytimes.com/2010/10/06/workers-not-saving-enough-to-get-401k-match/