The shorter the term of the loan, the less interest you pay, and the sooner you pay it off. So, why not apply for and obtain the shortest-term loan possible? This makes good sense if you are comfortable with the payment. Let’s take a look at the following 3 scenarios, a 30-year fixed, 15-year fixed, and a 30-year fixed paid over 15 years. TYPE OF MORTGAGE INTEREST RATE LOAN AMOUNT MONTHLY PAYMENT INTEREST PAID OVER LIFE OF LOAN 30-year fixed 4.0% $300,000 $1,432.25 $215,607.20 15-year fixed 3.5% $300,000 $2,144.65 $86,036.45 30-year paid over 15 yrs 4.0% $300,000 $2,219.06 $99,431.74 ...
Category: Mortgage Planning
NEW YEAR’S RESOLUTIONS
Now is the time that we reflect on 2018 and make resolutions for 2019. Many people will review their financial picture to see where they can improve on their finances for the upcoming year. The mortgage is as much a part of your financial picture as your investments. How best to finance the mortgage and control this expense can help your overall financial picture. To refinance to a 15-year fixed for a lower interest rate, or double up on your 30-year fixed payments, or consider a lower adjustable rate mortgage if you will be selling your home soon, or a...
January 5, 2019January 5, 2019john