You And The 30 Year Home Loans

You And The 30 Year Home Loans



You And the​ 30 Year Home Loans
In this article,​ we will discuss why this subject is​ so important and how you​ can benefit from this information.
It used to​ be the​ first choice of​ most borrowers,​ because since the​ total payments are spread over a​ longer period of​ time with the​ interest rate set for the​ entire time of​ the​ mortgage .​
30 year home loan rates are an​ industry standard but is​ it​ the​ right choice for you?
As we mentioned,​ the​ plus side for a​ 30 year home loan is​ lower monthly payments .​
This attraction is​ somewhat dimmed by the​ fact that you​ pay thousands extra in​ interest .​
But,​ your interest is​ 100% tax deductible which does lower your after tax cost .​
It offers you​ some flexibility so that if​ your financial situation changes and you​ have more money you​ can pay it​ off in​ less than 30 years,​ this while keeping the​ low monthly payments .​
Your payments are smaller so in​ reality you​ can purchase a​ larger roomier home.
We have just reached the​ tip of​ the​ iceberg,​ as​ the​ remainder of​ this article will help to​ further your understanding of​ this not so easy subject.
To show an​ example of​ the​ interest difference between 30 year home loan rates and one of​ the​ other rates .​
On a​ 30 year,​ 100,​000 dollar loan using 7% interest rate your monthly payment of​ interest and principle would be $665.30 dollars .​
Over the​ next 30 years you​ will have paid $139,​511.04 in​ interest alone .​
Now with a​ 15 year home loan rate on​ the​ same amount you​ will pay $871.11 per month and over the​ next 15 years,​ you​ would pay $56,​799 in​ interest .​
This would save you​ $82,​712 dollars.
If you​ have the​ will power to​ invest the​ savings from the​ monthly payments,​ it​ still could be a​ good choice to​ go with the​ 30 year mortgage .​
Especially if​ you​ can find an​ investment that the​ long term payoff matches or​ exceeds what you​ would save in​ a​ 15 year mortgage .​
Another factor to​ consider is​ how fast you​ want to​ accrue equity in​ your home or​ to​ own it​ out right .​
30 year home loan rates take much longer to​ build equity.
30 year home loan rates are certainly attractive and the​ vast majority of​ home buyers get 30-year loans because that is​ the​ longest home loan available today .​
Experts agree if​ they could get a​ 35- or​ 40-year loan,​ they probably would .​
There are many other options to​ consider .​
Probably the​ biggest question you​ have to​ ask yourself when considering a​ loan is​ what are your financial goals?
What loan plan will help you​ the​ most to​ reach that goal? It is​ clearly to​ your advantage to​ look into other loan options for the​ best loan available for you​ and your financial goals .​
It may surprise you​ that because of​ your personal situation there may be other plans more suitable for you​ .​
What you​ have learned while reading this informative article,​ is​ knowledge that you​ can keep with you​ for a​ lifetime.




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