Posted by: Meena Gujral | March 10, 2010

The 15-year and 30-year Mortgage Terms- Fremont Homes

The 15-year and 30-year Mortgage Terms.

Buying your own house is a good investment for you and your family’s future. You not only enjoy the comforts of your own home but the security of staying there for many years. In order to qualify for a loan you will need the assistance of financial institutions and lending companies. These organizations will be glad to help you.

You need to find a good lending company to make sure you can maximize the benefits and assistance you can get. You can ask some brokers for the most preferable lending institutions in your area. You have to evaluate which mortgage plan is best for you. You need to consider your paying capacity before deciding on which loan to get. You may ask your broker or your realtor’s opinion for their inputs on the matter. You may want to decide between the 30-year or a 15-year fixed rate mortgage.

The standard mortgage remains to be the 30-year fixed rate mortgage. This type of mortgage has an array of valuable benefits which was designed particularly for home buyers who are planning to stay in their home for a long period of time. Choosing this option will make your tax deduction substantial for the first 23 years of your mortgage loan. This is for the fact that you will be paying more of the interest in this period than your loan’s principal. Your payments will stay at fixed rate even if your income and living expenses increase.

The 15-year monthly mortgage on the other hand means higher monthly payments than an equivalent 30-year loan, as expected. The payments on the 15-year mortgage will be at the same rate as the previous mortgage term. It will be at roughly 20-25 % higher than a loan that takes twice as long to pay off but still at a lower interest rate for an otherwise similar loan. You’ll also expect a faster equity build-up since a great portion of your early payments are going towards paying off principal. This will make the 15-year mortgage the best option for people who are nearly approaching retirement. It can also be the best choice for anyone else who wanted to own their home free and clear as promptly as possible.

If you have any questions about Fremont homes for sale in California or are looking for homes for sale in Ardenwood, Mission San Jose Fremont, or looking to sell your home in Fremont, please call me at 510-279-9580. I can tell you how I can save you thousands of dollars when selling through Help-U-Sell Achievers Realty.

You can also go to my website: Fremont Homes and sign up there to receive e-mails when a new listing comes on the market matching your criteria.

Meena Gujral, Fremont Realtor


Help-U-Sell Achievers Realty

Five Canyons Homes Blog


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