Posted on 28 October 2009. Tags: Mortgage Broker, Mortgage Fraud, Mortgage Insurance, Mortgage Online Calculator, Mortgage Rates\
The confusion of choosing between a 15 year mortgage and 30 year has been a common one prevailing among borrowers. Today i am going to throw some light on why a 15 year mortgage is better even if you have to increase your monthly installments and suffer for a few years.
When we have 30 years to pay a loan why should we take the trouble of paying it off in 15 years by increasing our monthly interest and suffering to make the ends meet every month? Well here is the reason.
One of the major advantages of opting for a 15 year mortgage is the lesser amount of total interest paid apart from its rate of interest being typically lower compared to the 30 year mortgage.Initially the money you pay is accounted only for the interest. As years go by the interest you pay on a monthly basis is allotted to compensate for the principal.
Imagine a person has taken a FRM for 15 years at the rate of 5% and another person for 30 years at the rate of 5.25% for a principal of $200,000, lets see what happens:
15 year 30 year
Monthly Payment $1581 $1104
Interest Paid $84,686 $197,587
Total $284,686 $397,587
With a 15 year mortgage you save about $112,901 which can be used for a constructive purpose.
Posted in Home, Real Estate, Saving & Investing
Posted on 21 June 2009. Tags: Compare Mortgage Rates Online, from internet lead mortgage request wetleads, internet exclusive mortgage lead, internet mortgage leads, internet subprime mortgage lead, Mortgage Online Application, Mortgage Online Calculator, Mortgage Online Quote, Online Mortgage Brokers, Onlione Mortgage Companies, refinance fha mortgage over internet
I have realized that financial decisions are complicated! If you are planning to look up information on mortgage on the net, it’s not as simple as purchasing books online which have user reviews about how many of them bought the book, loved the book or gifted it to someone.
You would see consumers spending time and efforts more time bargaining for a discount as low as $5 on their grocery shopping as compared to seeking information on mortgage or analyzing whether the timing is correct to purchase a house.
If it’s refinancing that’s on your mind (and concerns pertaining to the drop in your credit scores due to late payment of bills) or if you are buying your first home ever seeking to take advantage of really low rates of the past (even though they are fast rising), then by all means it’s the most daunting task for consumers today. Read the full story
Posted in Home, Saving & Investing
