With mortgage rates being at their lowest level since the 1970s when such things began to be tracked, many bits of common real estate wisdom is starting to change. With rental prices up 5% across the nation, more people are looking at home-buying. Yet whether refinancing your home or looking at homes for sale in Waterloo IL, the question you need to ask is if the traditional 30-year fixed rate loans is the one for you. For a little more a month, many can save by going with a shorter term loan.
The 15-year Mortgage
While 15-year loans have always had smaller interest rates, the amount you had to pay a month usually made it prohibited to most home-buyers. Now, however, there are many benefits to a shorter term loan.
- Saving on Interest: While paying more each month for 15 years, the amount one saves in interest for the last 15 years one would pay on a 30-year loan can be significant.
- Faster Equity: The quicker the home is paid on the faster the home accrues equity. Since this is one of the major benefits of owning a home, it is a big plus.
- Own it faster: With economic times being what they are, being free and clear on your property is very important.
15-Year Drawbacks
- Nature of the 15-year loan: The fees can be expensive, you may not qualify and the loan paperwork can take much longer to process than expected.
- Larger Payments: Even though they are cheaper these days, a 15-year loan has larger monthly payments.
No matter what type of loan you get, you undoubtedly want to find a home in the beautiful community of Waterloo, and Tammy Mitchell Hines can help. Call her today to find out more about living in Waterloo.
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