What if you don't expect to live more than another 15 years?

How this affects what kind of mortgage to get

If you don't expect to live more than another 15 years then there are some special things you should consider.

First, you might be better off renting instead of buying. Buying is a long-term investment and ties up your cash, while renting keeps your cash liquid.

However, you might want to buy a house anyway so you can leave it to heirs who might have a difficult time purchasing a house themselves.

Whether or not you have heirs, if you do buy a house, get a 30-year loan. If you're not going to live long enough to enjoy the benefits of paying off your house, then don't bother trying to pay it off quickly. Get a long-term loan so your payments will be lower and so you have more short-term cash available in the years you have left.

Your heirs will inherit the house, and will be responsible for paying the mortgage. Don't feel bad about "sticking" them with the a 30-year mortgage -- they're getting whatever equity you have in the house for free, and it's a super deal for them to inherit the mortgage since they get the house with it. If they don't like the 30-year mortgage they can always pay it off quicker.

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