15 Years or 30 Years?

There is no shortage of decisions to be made when applying for a new mortgage loan. A common question mortgage professionals ask their home buying customers is whether they would prefer a 15-year fixed rate mortgage or a 30-year fixed rate mortgage. So how do you decide? Let’s review the major advantages of 15 and 30-year fixed rate mortgage loans.

Benefits of 15-Year Fixed Rate Mortgages
1. Pay off Your Mortgage Faster – The sooner you pay off your mortgage loan, the sooner you will have more income at your disposal for retirement, vacations, etc.
2. Save Money On Interest – The shorter your finance term, the less you pay in interest.
3. Build Equity Faster – Equity is the difference between what your house is worth and what you owe. Home equity builds as your property value increases or your mortgage balance decreases. With a 15-year fixed rate mortgage – you are paying down your principal balance faster than you would with a 30-year fixed rate mortgage loan.

Benefits of 30-Year Fixed Rate Mortgages
1. 30-year fixed rate mortgages have lower monthly payments which often outweigh the benefits of a 15-year mortgage. A 30-year fixed rate mortgage may be more desirable if you are on a tight budget and need more wiggle room for unexpected expenses. Additionally, lower fixed payments may enable you to pay off other higher interest debt, make home improvements, or save for a rainy day – which may not have been possible if you elected for the shorter 15-year mortgage term.
2. Interest paid on a mortgage loan is tax deductible. Because 30-year fixed rate mortgages involve higher interest payments, this type of mortgage may be a better fit for people who need additional write-offs. For instance, high earners, self-employed people, and independent contractors may all benefit from a long-term mortgage. Even if you’re an employee with a modest income, you can still take advantage of a 30-year fixed rate mortgage to lower your tax liability. Consult your tax professional for more information on mortgage interest tax deductions.

Making Your Decision
Deciding between a 15-year mortgage and a 30-year mortgage is a major decision that will have long-lasting effects on your personal finances. Before settling on a term, consider your current financial situation and your long-term financial goals. Take into consideration your other debts and household bills.
If you are a first time home buyer, consider the amount of disposable income and personal savings you have. A 15-year mortgage can take a significant portion of your income, and if you don’t have a lot of extra income or a significant savings account, it’s likely in your best interest to skip the shorter term and stick with a 30-year mortgage.
15 and 30-year fixed rate mortgage are at all time record lows according to Freddie Mac. To take advantage of these record low rates, apply today by calling1-888-936-4232.

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUDFHA including FHA 203K, VA, and USDA approved.
Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS# 1016. Inlanta Mortgage is proud to be a recent recipient of a 2012 Top Workplace Award.


About Best Florida Mortgage Company! Jim Marcinkowski

Mission Statement Our mission is to be the home financing partner that you trust to serve your family, friends and community. Through our family of dedicated mortgage professionals, our commitment is to deliver an exceptional experience. Our unwavering dedication to integrity, honesty and ethics is the foundation of all of our relationships. NMLS 182565, NMLS 1016
This entry was posted in Credit Score, FHA 203k, Florida Home Financing, Loan, Mortgage, Mortgage Financing, Refinance, USDA Home Loan, Veterans. Bookmark the permalink.