Why a 15 Year Fixed Mortgage Is The Best Choice
When buying a home or refinancing your existing mortgage consider a 15-year mortgage, it is by far the best choice.
THE 15-YEAR MORTGAGE IS A LONG-TERM SAVER’S DREAM
When buying a home and getting a mortgage each time you make your mortgage payment a portion of your payment goes to pay down your principal balance. Home ownership is a fixed savings plan! When you go with a 15-year mortgage each time you make your monthly payment more money is applied straight to paying down the principle. That is why a 15-year mortgage is the smarter choice because you are saving at a greater rate.
The question is… would you rather save more and have a home that you own free and clean in less time.? If so, than a 15-year mortgage is the way to go.
SAVE THOUSANDS OF DOLLARS IN INTEREST
Going with a 15-year mortgage saves you thousands and thousands of dollars! The example in the chart below, you would save $63,191.86 in interest.
HAVE YOUR HOME PAID OFF IN HALF THE TIME
One of the biggest benefits of a 15-year mortgage term is the ability to quickly pay off your home loan. This option is perfect if you plan to stay put and don’t want to pay your mortgage for a lengthy period of time. Mortgage payments are huge expenses, but with your payment out of the picture, you can focus on other things like preparing for retirement, working fewer hours, and enjoying the freedom of not having a mortgage payment.
According to Proverbs 22:7, “The rich rule over the poor, and the borrower is slave of the lender”
Bottom Line: Look at the charts below
Based on a loan amount of $150,000 if you obtain a 15-year mortgage you will pay a total of $33,227.84 in interest compared to a 30-year mortgage you will pay a total of $96,419.70 in interest.
The “Cost Of Loan” below is the total amount of principal and interest you would pay over the term of the mortgage you obtain.
By making the smarter choice of putting a 15-year mortgage in place you would save $63,191.86. Not only have saved a huge amount of money you would own you home FREE-AND-CLEAR in 15 years. How cool would it be to have NO mortgage payment?
Do the math and make the smarter choice of a 15-year mortgage when buying a home!
If a 15-year mortgage is a stretch as to the monthly payment, then consider going with a 20-year mortgage as your next best option.
The bar chart below shows the total interest you would pay on a 15-yr, 20-yr, and 30-yr mortgage.
November 4, 2015: The interest rates on the chart above are based current rates as to the day of this article. Interest rates will change and so will the numbers based on interest rates.
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