| It used to be the first choice of majority borrowers, | | | | over the next 15 years, you would pay $56,799 in |
| because since the total payments are spread over a | | | | interest. This would make a saving of $82,712 for you. |
| longer range of time with the mortgage interest rates | | | | If you have the will power to invest the savings from |
| set for the entire time of mortgage. 30 year home loan | | | | the monthly payments, it still could be a good decision |
| rates are an industry standard but is it the right option | | | | to go with the 30 year mortgage. Particularly if you |
| for you? | | | | can find an investment that the long term payoff |
| As we discussed, the advantage side for a 30 year | | | | matches or exceeds what you would save in a 15 |
| home loan is lower monthly payments. This attraction | | | | year mortgage. Another constraint to consider is how |
| is somewhat dimmed by the truth that you pay | | | | fast you want to accrue equity in your home or to |
| thousands extra in interest. However, your interest is | | | | own it out right. 30 year home loan rates take much |
| 100% tax deductible which does reduce your after tax | | | | longer to have equity built. |
| cost. It provides you some flexibility so that if your | | | | 30 year home loan rates are certainly attractive and |
| financial condition changes and you have more money | | | | the vast majority of home buyers acquire 30-year |
| you can pay it off in less than 30 years, this while | | | | loans because that is the longest home loan available |
| keeping the low monthly payments and mortgage | | | | in the present time. Experts agree if they could acquire |
| interest rates. Your payments are smaller so in reality | | | | a 35- or 40-year loan, they probably would. There are |
| you can buy a larger roomier home. | | | | several other alternatives to consider. Probably the |
| To give you an example of the interest difference | | | | biggest question you have to ask yourself when trying |
| between 30 year home loan rates and one of the | | | | to consider a loan is what are your financial goals? |
| other rates. On a 30 year, 100,000 dollar loan utilizing | | | | What loan plan will help you the most to reach that |
| 7% interest rate your monthly obligation of interest and | | | | plan? It is clearly to your advantage to look into other |
| principle would be $665.30. Over the next 30 years | | | | personal loans or home loan alternatives for the best |
| you will have a payment of $139,511.04 in interest alone. | | | | loan available for you and your financial goals. It may |
| On the other hand, with a 15 year home loan rate on | | | | surprise you that because of your personal situation |
| the same amount you will pay $871.11 per month and | | | | there may be other plans more advantageous for you. |