Example: take a look at payment and term options for a $300,000 loan. A 30-year mortgage at 3.5% requires a $1350 monthly payment. In 30 years that $300,000 is paid off but you’ve also shelled out a whopping $185,000 in interest A 15-year mortgage at 3.0% takes $2070 per month. After 15 years the $300,000 debt is gone along with roughly $73,000 paid in interest. A 20-year mortgage at 3.25% costs $1700 per month and $109,000 in interest over the term of the loan. This model reveals the significant difference in one’s monthly payment and overall interest paid to purchase your home. Now, under the new mortgage terms you can figure out what payment works for your budget and the length of time you want to carry the debt. Obviously, the shorter the term of the mortgage, the higher your monthly payment, but you decide what you can handle financially. Any uncertainty about that decision can be alleviated when you work with an experienced professional mortgage company that takes the time to walk you through newly available mortgage scenarios. Fortunately, there are many financial possibilities that allow you to retire a mortgage according to your own timetableged. In this streamlined age you can now pick your terms be they 6, 22, 17 or even 9 years?
Imagine your quality of life without a house payment.