January 19th, 2013 8:15 AM by Nathan Rufty
Whether you are purchasing or refinancing a home, you may want to explore a 15 year term as well. You are have a chose of a 30, 20, 15 or 10 year term to finance your loan amount, short the term higher the payment. With rates at still an all time low, you may be surprised that your budget can handle a shorter term loan when purchasing or refinancing a home.
With rates on a 15 year fix term in the mid to high 2% range, you can not finance any larger amount of money (like a mortgage) any where else at that rate, 30 year terms are also at a mid 3% range. We are used to having a 30 year term mortgage on a home loan (fix rate only, no adjustable rates here) because the monthly payment is at it's lowest verses a 15 year. Lets discuss the payment options of the different terms and see what the overall payment may be.
The difference between the terms are the monthly mortgage payment, from high to low. How this breaks down is: do you wish to finance your home loan over a longer period of time or a short period of time? Benefits of a short term mortgage loan:
If you are thinking about purchasing or refinancing a home in 2013, please do not hesitate to contact me to explore the different term options on a home loan.