"I am 58 years old and looking to buy a new home. I won't be able to pay off this home before I retire, but I would like my payment to drop at retirement because my income will drop. I was thinking that a combination of a 15-year and a 30-year mortgage might work for me because the 15-year portion would be paid off about the time I retire. What do you think of this idea?"
It is interesting. If you borrow $100,000 at 5 percent for 30 years, your payment is $537 for 30 years. If you take a 15-year at 4.5 percent, the payment is $765 for 15 years. If you borrow $50,000 of each, the payment is $651 for the first 15 years, and $269 for the next 15 years. This is the kind of deal you are looking for. Obviously, the portion of the combination that is 30 relative to the