30-Year Mortgage Loans

It used to be the first choice of most borrowers, since the total payments were spread over a longer period of time. The interest rate is set for the entire period of time of the mortgage. 30-Year Home Loan rates are an industry standard. But is it the right Option for you? Today this is the first choice of most home owners.

If you have the willpower to invest the savings from your monthly payments, a 30-year mortgage might still be a good option. Especially if you can find an investment whose long term payments equals or exceeds what you would save on a 15-year mortgage. Another matter to consider is how fast you want to build equity in your home. 30-year mortgage loan rates take longer to generate equity.

As we mentioned, the lining of a 30-year home loan is the lower monthly payments. This attraction is tempered by the fact that it pays thousands of additional dollars in interest. But, your interest is 100% tax deductible, which reduces your after-tax cost. It offer you flexibility so that if your financial situation changes and you have more money, you can pay it off in less than 30 years, this while keeping monthly payments low. Your payments are smaller, so you can buy a bigger, more spacious home.

To show an example of the difference in interest between the 30-year mortgage loan rates and other rates. On a $ 100,000 30-year loan with an interest rate of 7%, your monthly interest and principal payments would be $ 665.30. Over the next 30 years, you will have paid $ 139,511.04 in interest. But, with a 15-year mortgage loan rate on the same amount, your payment is $ 871.11 per month. And for the next 15 years, you will pay $ 56,799 in interest. This would save you $ 82,712.

30-year home loan rates are attractive, and most home buyers take out 30-year loans. The reason is, that's the longest home loan available at this time. Experts agree that if a potential home owner could get a 35- or 40-year loan, he would. There are other options to consider. An important question to ask yourself when considering a mortgage loan is, what are your financial goals? Which loan plan will best help you achieve that goal? You should look to other loan options to get the best loan available for you and your financial goals. It may surprise you that due to your personal situation there are other mortgage plans more suitable for you.