"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 portion that is 15 could be adjusted to the circumstances of the borrower.