07/23/2016
The Truth About Mortgages
We need to talk about mortgages for a second... it's important...
..because if you currently own a home... or... are looking to buy a house any time soon... there are a few important things you need to know...
Owning a home is pretty much number one on the wish-list for many of us...Especially a home that's paid off free and clear...
And everyone knows - Paying off your mortgage faster is a smart move...
Because you can decrease your monthly expenses and give your retirement, children's college fund, or day-to-day savings the attention they deserve...
Now listen - for the first few years of your mortgage, the majority of your payment will go towards interest.
So if it's possible, you may want to:
Choose a 15-year fixed rate mortgage
Most people choose a 30-year mortgage because they think it's "extra money" in their pocket each month...
But this is only partially true...
Because if you can swing the 15 instead... just look what happens...
• With a $200,000 mortgage at an interest rate of 6% for 30 years, your monthly mortgage payment will be $1,199 and you'll pay over $231,000 in interest throughout the course of your mortgage.
• If you take out a loan for $200,000 at an interest rate of 6% for 15 years instead... your monthly mortgage payment will be $1,688 and you'll pay just over $103,000 in interest throughout the course of your mortgage.
• Even though a 15-year term will force you to pay a higher amount each month, you'll be free from paying a mortgage in just 180 months and you'll save $100,000 or more in interest payments.
• 15 year fixed rate mortgages often have lower interest rates because the lender assumes a lesser risk than a 30-year mortgage term.
All in all, it's about what you can afford. But as you can see, if you sacrifice a little bit each month, you can save yourself tens of thousands over the long run.
I'm here NOT only to help you get into a new home but to save you thousands of your hard earned money by educating you.
