By W. Todd Galde
So there you are, sitting around the kitchen table, bemoaning the fact that you have 25 years left on the mortgage you took out back in 2012 and with rates on the rise, "It's time to hunker down, hon..."
Or maybe not...
With 15-Year fixed rates still in the 3.25-3.5% range, now may be the time to potentially save over $100,000 by shortening the term of your loan. Say what? Yep, you heard it right. If you took out a $400,000 30 year mortgage in 2012 with a 4% rate you would be sitting at a principal balance of about $362,000. By converting it now to a 15-year fixed mortgage at 3.5% you would save $103,159 in principal and interest payments by cutting the term short by 10 years. Of course, the monthly payment will be higher with a 15-year term, but so is your income now, and it should continue rising over the next 10-15 years.
15-Year Fixed loans aren’t for everyone, but it may be something to consider if you have been thinking about it. In fact, there are a number of benefits to a shorter loan term vs. the traditional 30-year fixed. Here are five indisputable reasons you may want to consider a 15-year or even 20-year term:
If this is something that is of interest to you or someone you know, please feel free to email or call. We are here to serve you.
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