mortgage simple definition: Pros and Cons of a 15 year Mortgage

Pros and Cons of a 15 year Mortgage

Pros and Cons of a 15 year Mortgage. 15 vs 30 Year Fixed Mortgage (Comparison by Realtor at eXp Realty)

Pros and Cons of a 15 year Mortgage video duration 7 Minute(s) 45 Second(s), published by My Perfect Mortgage on 17 01 2019 - 19:36:20.

Should you be considering a 15-year mortgage in this historically low rate environment? Learn more at https://myperfectmortgage.com Pros and Cons of a 15 What is the difference between a 15 Year and a 30 year fixed rate mortgage? Does paying the same amount on a 15 year fixed as a 30 pay off your debt .

Here's why I don't recommend getting a 15 year mortgage vs a 30 year mortgage, and how taking out a longer term loan could leave you with WAY more http://loansbypolaris.com/ (937) 813-8624 Polaris Home Funding Corporation-Miamisburg Miamisburg Couldn't ask for a better experience! From start to finish Comparing 15 yr fixed rate mortgage vs 30 yr fixed rate mortgage
Drew Kuhlmann, exp realty, helps you understand how to compare the differences and .

Should you be considering a 15-year mortgage in this historically low rate environment? Learn more at https://myperfectmortgage.com

Pros and Cons of a 15 Year Mortgage

Pros
A 15-year mortgage costs much less than to borrow money over 30 years.

* Save on the total cost of your mortgage - On a 4% mortgage you could pay nearly 46% less interest expense over the life of your loan.
* 15-year mortgages have a lower interest rate - Considering the fact that 15-year mortgages also have a lower interest rate that savings can be even greater, to the tune of tens of thousands of dollars.
* Less loan level price adjustments and fees

Cons
Shorter mortgages naturally will have higher monthly payments than longer-term loans. For example, a 15-year loan for $300,000 at 4% interest has a monthly payment of $2,219, or 55% higher than a 30-year mortgage for the same amount at the same rate.

* Higher payments may limit you to a more modest home
* Higher payments require greater reserves
* Higher payments may force you to forego alternative investments

When you should consider 15 year

* Getting closer to retirement
* Want to create additional financial discipline for yourself
* When you just want the peace of mind of being debt free

When you probably shouldn’t consider a 15 year

* Monthly cash flow is tight
* When you want to invest more in other assets
* When your income fluctuates
* When you have other competing expenses

The Bottom Line

A 15-year mortgage can save you a lot of money. Imagine a $300,000 loan, available at 3.25% for 15 years or at 4% for 30 years. The combined effect of the shorter term and the lower interest rate means that your cost of borrowing for 15 years is only $79,441, compared to $215,609 over 30 years, or nearly two-thirds less.

Learn More:
https://myperfectmortgage.com/15-year-mortgage/
https://myperfectmortgage.com/pros-and-cons-of-the-15-year-fixed-mortgage/
https://myperfectmortgage.com/is-a-15-year-mortgage-right-for-you/