It used to be the first choice of most borrowers, because since the total payments are spread over a longer period of time with the interest rate set for the entire time of the mortgage. 30 year home loan rates are an industry standard but is it the right choice for you?
The 30 year home loan is an industry standard, but is it the right choice for you? Because the total payments are spread over a longer period of time and the interest rate set for the entire time of the mortgage. This was the first choice of most home owners.
As we mentioned, the plus side for a 30 year home loan is lower monthly payments. This attraction is somewhat dimmed by the fact that you pay thousands extra in interest. But, your interest is 100% tax deductible which does lower your after tax cost. It offers you some 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 the low monthly payments. Your payments are smaller so in reality you can purchase a larger roomier home.
To show an example of the interest difference between 30 year home loan rates and one of the other rates. On a 30 year, 100,000 dollar loan using 7% interest rate your monthly payment of interest and principle would be $665.30 dollars. Over the next 30 years you will have paid $139,511.04 in interest alone. Now with a 15 year home loan rate on the same amount you will pay $871.11 per month and over the next 15 years, you would pay $56,799 in interest. This would save you $82,712 dollars.
If you have the will power to invest the savings from the monthly payments, it still could be a good choice to go with the 30 year mortgage. Especially if you can find an investment that the long term payoff matches or exceeds what you would save in a 15 year mortgage. Another factor to consider is how fast you want to accrue equity in your home or to own it out right. 30 year home loan rates take much longer to build equity.
30 year home loan rates are certainly attractive and the vast majority of home buyers get 30-year loans because that is the longest home loan available today. Experts agree if they could get a 35- or 40-year loan, they probably would. There are many other options to consider.
Probably the biggest question you have to ask yourself when considering a loan is what are your financial goals? What loan plan will help you the most to reach that goal? It is clearly to your advantage to look into other loan options for the best loan available for you and your financial goals. It may surprise you that because of your personal situation there may be other plans more suitable for you.
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Home Loan Books
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Mortgages 101: Quick Answers to Over 250 Critical Questions About Your Home Loan List Price: $16.95 Sale Price: $2.84 |
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With mortgage stories dominating the front-page news, people--whether they're buying a new house or refinancing--increasingly have questions about the complicated issues at stake. Arranged in an easily accessible question-and-answer format, Mortgages 101 provides readers with essential lending formulas, as well as important information on lending requirements and application procedures... |
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Mortgage Ripoffs and Money Savers: An Industry Insider Explains How to Save Thousands on Your Mortgage or Re-Finance List Price: $17.95 Sale Price: $9.65 |
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Carolyn Warren better get a bodyguard. Her new tell-all on the mortgage industry exposes so many of the lending industry's favorite frauds, every loan officer from Seattle to Miami is going to be gunning for her! Mortgage Rip-Offs and Money Savers is like a map that guides you around the carefully camouflaged landmines laid by lenders... |
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The Pocket Mortgage Guide: 60 of the Most Important Questions and Answers About Your Home Loan - Plus Interest Amortization Tab List Price: $9.95 Sale Price: $3.50 |
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The "Mortgage Professor" answers critical homemortgage questions This value-packed consumer reference by a nationally syndicated mortgage columnist is indispensable for anyone looking to secure a home mortgage... |
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The Complete Idiot's Guide to Success as a Mortgage Broker List Price: $19.95 Sale Price: $3.79 |
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Break into the brokerage business. Here is a step-by-step handbook to joining this elite group. Written by an accomplished mortgage broker with more than 15 years in the business and 2,000 deals to his credit, this book covers everything from whether or not real estate financing is the right career move to how to master the skills necessary to be successful... |
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So You Want to Refinance: An Insiders Guide to Refinancing Adjustable Rate Mortgages and Home Loans List Price: $16.95 Sale Price: $12.96 |
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Are you paying more than you need to?In this book a mortgage lending insider reveals her answer to this question - and more - in her best selling So You Want to Refinance. If you are baffled by the dizzying array of mortgage companies, sales pitches, and loan products, this book is for you... |
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The No-Nonsense Credit Manual: How to Repair Your Credit Profile, Manage Personal Debts and Get the Right Home Loan or Car Lease List Price: $19.95 Sale Price: $14.95 |
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The Foreclosure of America: Life Inside Countrywide Home Loans and the Selling of the American Dream List Price: $16.00 Sale Price: $3.55 |
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Now in paperback-an inside look at Countrywide Home Loans and the mortgage crisis, from a former mortgage lender executive. In July 2004, Adam Michaelson attended a high-level meeting at Countrywide Financial headquarters about a new loan product that would allow borrowers to pay less than their minimum monthly payment... |
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Veterans Benefits Guide - Compensation, Appeals, Disability, Medical Care, Insurance Programs, Plans for Families, GI Bill, Home Loan Guaranty (Book plus Two CD-ROM Set) List Price: $29.95 Sale Price: $29.95 |
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This unique book and CD-ROM set combines our new ring-bound book reproduction of the government guide, "2007 Federal Benefits for Veterans and Dependents" and additional material, with our comprehensive and updated 65,000 page two CD-ROM set on every aspect of veterans affairs and the Department of Veterans Affairs (VA)... |
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203K Loan: The Hottest Rehab Loan Product On The Market (Volume 1) List Price: $19.95 Sale Price: $18.44 |
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Learn how to use the 203k to purchase or refinance a 1-4 unit residential or mixed-use building and take advantage of this wonderful loan program. The time has never been better to use this rehab loan program... |
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How to Get the Best Home Loan, 2nd Edition List Price: $24.95 Sale Price: $2.72 |
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Save Time and Money–and Get the Loan That’s Right for You Ever-changing mortgage guidelines . . . confusing financial forms . . . if you’re buying or refinancing a home, you know all too well how overwhelming and intimidating the mortgage process can be... |
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