30 Year Or 15 Year Mortgages

30 Year Or 15 Year Mortgages

With improving economic conditions, consumers are being faced with an important decision when choosing their next mortgage: a 15 year, or 30 year mortgage. 

If you’re in a similar situation, here are some questions you need to think about

1. Can you really afford to pay off the mortgage in just 15 years?

While 15 year mortgages do offer lower rates, relative to a 30 year mortgage, the 15 year mortgage results in higher monthly payments. Because you’re paying the mortgage in half the time, you have to pay double the amount

The benefits of paying the mortgage in 15 years is obvious – the longer you take to pay the principle, the more interest accrues. If you’re financially solvent, there’s no reason not to take the 15 year mortgage. Just remember, by paying more each month on your mortgage payment, that’s less money to use for other things, like savings, vacations, and other expenses. 

2. Are you a first time buyer?

First time buyers are better off choosing a 30 year mortgage, because of monthly lower payments. First time homebuyers are normally more financially fragile, and as a result need the lower payment flexibility that a 30 year old mortgage provides.

30-year mortgage, or 15? 5 questions to help you choose – USA TODAY

http://news.google.com Fri, 08 Nov 2013 01:38:06 GMT

New York Times 30-year mortgage, or 15? 5 questions to help you choose USA TODAY As part of this effort, the CFPB has proposed new disclosure forms to help borrowers understand the real risks and costs associated with their mortgage. But many potential borrowers are still unsure about the type of mortgage that is right for them. Delay Legal Liability Under New Mortgage Rules American Banker (subscription)118 House Members Push for Delay of New Mortgage RuleReverse Mortgage DailyOver 100 members of Co …

 

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