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Thursday, 11 September 2008 |
By John Wetmore
 Here at Auburn Mortgage in 30141, we are always looking for ways to help clients save $1000s in interest costs for their loans. We had a recent discussion with a client about the advantages of a 15-year fixed mortgage over a 30-year fixed mortgage. When we ran some quick numbers, the money saved was staggering. We were thinking that more people should consider this excellent forced savings plan.
Has your mortgage agent or loan officer ever asked you about how much you could afford to pay if it was going to mean you would save over $100,000 through the life of your loan? Everyone always wants lower rates, right? What most people don't realize about a 15-year mortgage product is that the interest rates available are often anywhere from .75 - 1.125 interest points less than their 30-year fixed counterparts, but the monthly payment increase is not that significant. In the example we were looking at for a $200,000 loan, it was $400 more per month. While these numbers will change from situation to situation and |
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Last Updated ( Thursday, 11 September 2008 )
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