The most common loan applied for
throughout the country is a fixed rate 30 year mortgage. That might be the right
choice for you. But have you considered a fifteen year loan? What do you have to
gain by choosing a shorter term?
A 15 Year mortgage carries a lower interest rate right from the start,
compared to a 30 year loan, as much as 1/2% or more.
A 15 Year loan will typically cost you tens of thousands less in interest
over the term of your loan than a 30 year loan
A 15 Year loan will mean your house is paid off in half the time - perhaps
just in time to pay for college tuition for your children or elder care for
your parents
A 15 Year loan will help you build up equity in your home much faster -
enabling you to receive more in cash if you have to sell before the loan is
paid in full.
A 15 Year loan, while more expensive each month, is NOT twice as expensive
as a 30 year loan -- it is more affordable than you may think!.
A 15 Year loan means that you are putting more of your disposable monthly
income toward paying off your mortgage debt than in other investment
vehicles. Against most competitive investments, your house compares quite
favorably.