Free In 15 Years!
Imagine paying your mortgage off in 15 years! Think of all the great things you could do with that extra money. What would you do? Retire early? Buy an R.V.? Travel around the world? If you could eliminate your mortgage in half the time, then your options would be wide open.
Lets take a look at 3 benefits and 3 considerations when evaluating whether or not the 15 year fixed rate mortgage, is right for you:
1. Lower Interest Rate:
The 15 year amortized fixed rate loan carries a lower interest rate.
interest rate is usually about ½ % the rate of a 30 year term.
2. Huge savings on Interest Paid:
Do you want to save a ton of money? A 15 year fixed will accomplish this for you.
look at a $300,000 loan. Over the course of 30 years, at 6% interest, you will
pay the bank $347,514 in interest. (Yes thats right. Youre paying
the bank 115% of the loan value, over the course of 30 years).
3. Mortgage Paid in 15 years:
Because the loan is amortized for 15 years, instead of 30 years, your commitment to the bank is cut in half.
is an enormous advantage. After 15 years, money normally applied to a house payment
can be applied to investments.
So weve established that a 15 year loan clearly has some amazing benefits. But, is the 15 year loan right for you? Lets take a look at some important considerations:
Even though the 15 year fixed rate loan enjoys a ½% savings in interest, there is still the question of affordability.
example, a $300,000 mortgage, amortized over 30 years at 6%, equates to a monthly
house payment of $1798.
5. Expendable Income
The 15 year fixed rate loan is an important consideration if you have extra income and you are looking to apply it somewhere. Ask these important questions:
all your bills getting paid?
Start by completing a budget analysis, and figure out a plan to get you from point A to point B.
6. The 15 Year Loan As An Investment:
This is really, the most important consideration. A 15 year fixed rate loan is more of an investment then anything else.
financial benefits of a 15 year fixed rate RIVALS the benefits of a 401k, Roth
IRA, and Mutual Fund performance.
Weve enjoyed providing this information to you, and we wish you the best of luck in your pursuits. Remember to always seek out good advice from those you trust, and never turn your back on your own common sense.
Disclaimer: Statements and opinions expressed in the articles, reviews and other materials herein are those of the authors. While every care has been taken in the compilation of this information and every attempt made to present up-to-date and accurate information, we cannot guarantee that inaccuracies will not occur. The author will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.
About The Author
Copyright 2004, by LoanResources.Net
Tom Levine provides a solid, common sense approach to solving problems and answering questions relating to consumer loan products. His website seeks to provide free online resources for the consumer, including rate-watch, tips and articles, financial communication, news, and links to products and services. You can check out Tom's website here: http://loanresources.net, or you can email Tom at firstname.lastname@example.org.
Reprinted from ArticleCity.com
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