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15 Year Mortgage Good Or Not So Good

A 15-year home loan is an excellent home loan for homebuyers who can pay much higher monthly installments and complete their home loan faster in half of the time of a 30-year mortgage loan. This will help save money. Before deciding to take a 15-year mortgage loan, consulting a mortgage lender is important. If you have a continuous source of income, then a 15-year mortgage loan will suit you best. You can save enough money after your monthly installment to handle routine expenses and emergencies. Read here about the pros and cons of a 15-year mortgage loan : <br>https://www.drewmortgage.com/15-years-mortgage-pros-and-cons/

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15 Year Mortgage Good Or Not So Good

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  1. Introduction A 15-year mortgage helps you complete your home loan much faster. Budgeting higher monthly payments are important. Keep in mind some pros and cons of a 15-year mortgage. A 15-year mortgage is an excellent home loan for homebuyers who can pay much higher monthly installments and want to close their mortgage in half the normal time, while saving a significant amount of interest. This type of mortgage requires a continuous income and you can save enough money after your monthly installment to handle routine expenses and emergencies. 2

  2. Less than two in six borrowers are using a 15-year mortgage. Many borrowers turn away from the shorter home loans when they know that it requires a huge payment on a monthly basis. • A 15-year mortgage can be described as a fixed-rate mortgage that will be cleared in 15-years when you make all the payments on time. • These mortgages come with a fixed rate, which carries the interest rate and payments the same till the mortgage is completed. However, your taxes and insurance payments can change. • If you’re thinking about a 30-year mortgage, then look for a lower mortgage payment option.

  3. If you choose a 15-year mortgage you’re probably going to save a lot of dollars over the life of the loan. With this you’ll also have significant savings. A 15-year mortgage offers an average interest rate of at least 3/4 of a percent lower than 30-year mortgages. The benefit of a 15-year mortgage loan is that you’ll grow equity faster. When your monthly mortgage payment is higher and you pay less interest, equity will grow faster. A 15-year loan term is an excellent way to save a lot of money. Pros of a 15-year mortgage 3

  4. Making a higher payment each month will let you spend less and invest more. If anything changes in your financial status you would be compelled to refinance or miss payments. With a 15-Year Mortgage, you would be allowed to pay the mortgage off faster, get a lower interest rate, enjoy substantial savings over the life of the loan, and eventually have lower closing costs in some cases. Shorter-term loans are lower at risk and cheap for banks to fund. If you got your mortgage from one of the government-sponsored companies, then you would likely pay less in fees for a 15-year loan. 4

  5. One big reason homebuyers choose not to get a 15-year mortgage because it demands a higher mortgage payment. In a 15-year mortgage payment, you would be asked to pay more hundreds of dollars per month. The monthly payment on a 15-year loan is higher and it causes your DTI ratio. One disadvantage of a 15-year mortgage is that you have to make higher monthly payments. In shorter mortgages, higher payment might restrict the buyer to a more modest house. The higher payment means a borrower may not get a chance to build up other savings. Reasons Why You Shouldn’t Go for a 15-year mortgage. 5

  6. A 15-year, fixed-rate mortgage is a wonderful option for borrowers who can pay heavy amounts while still saving and investing for retirement. Completing a mortgage gives a feeling of freedom and safety to many people. The 15-year mortgage has become a choice for those who want to own a home by a certain time. You can refinance your existing loan, aim to become debt-free by retirement or free up cash flow for remodelling or to help pay off student loans or buy a home. Is a 15-year mortgage good for you? 6

  7. If your income is not consistent, avoid this type of mortgage. Ask yourself and mortgage lenders what would happen if your income is average and your payments become too much. Understand your needs and situation, then take the right decision. For more details visit : https://www.drewmortgage.com/15-years-mortgage-pros-and-cons/ 7

  8. If you’re looking for a mortgage lender in MA, Drew Mortgage Associates, Inc. can help you choose the right loan and provide you with all the valuable information about the mortgage loans. Drew Mortgage Associates, Inc. is the most preferred mortgage lender in MA. 8

  9. DREW MORTGAGE BRANCH OFFICES: Drew Mortgage Associates 196 Boston Turnpike Road Shrewsbury, MA 01545 Phone: 508-753-1656 Website: https://www.drewmortgage.com/ Peabody Mortgage Lenders 1 Mt Pleasant Drive Peabody, MA 01960 Phone: (978) 750-1080 Boston Mortgage Lenders 232 Commercial St Boston, MA 02109 Phone: (617) 523-3060 10

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