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thinkingofbuying
Guest
0.10 Dollars($)
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 Posted: Mon Jun 19, 2006 10:52 am Post subject: 15 year loan instead of 30 year |
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Why should I go for a 15 year loan instead of a 30 year loan when the payment is much lower on the latter?
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Angel
Guest
0.10 Dollars($)
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| Posted: Mon Jun 19, 2006 11:09 am Post subject: |
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It's up to you on the type and amount of payment where you find yourself comfortable. The loan type that you choose should be based entirely on your requirements and comfort.
There are various types of mortgage loan products in the market as the requirements vary from one consumer to the other. A particular type of loan suiting one consumer doesn't mean that it will also prove to be best option for you. |
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 Samantha
Community Mentor
Joined: 16 Sep 2005
Posts: 1535
Location: MASSACHUSETTS
136.50 Dollars($)
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| Posted: Mon Jun 19, 2006 11:30 am Post subject: 15 year loan instead of 30 year |
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Hi,
Angel is correct with her views. You must choose a particular mortgage loan based on your suitability.
Now if you look at the general advantages of a 15 year mortgage loan then you will find that with this type of loan you are paying off the property faster compared to a 30 year mortgage loan.
The rate is fixed and though you find your payments much higher compared to a 30 year mortgage loan you ultimately pay less on this loan if you compare the amount that you pay on the interest over the loan term.
Some consumers may find the mortgage payments high to afford each month but to some consumers a 15 year loan helps them in forced saving and thus help to build up equity on the house each month faster. That can be comfortably achieved with a disciplined monthly budget.
But it's your choice and financial condition to guide you in picking up the right type of loan for you.
If you opt for a 15 year mortgage loan and have doubts whether you can afford the payments then one way to go for it is to buy a smaller and affordable property. In any case if you find the payments difficult you may refinance and switch over to a longer term.
God bless you.
For MortgageFit,
Samantha
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creditandmortgageindex
Joined: 01 Feb 2006
Posts: 10
0.57 Dollars($)
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| Posted: Fri Jun 23, 2006 3:54 pm Post subject: |
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agreed. entirely depends on the situation. but in my opinion, the loan period should be as shorter as possible - as short as you can afford. just because the payment would be lower is no reason to extend the mortgage period. no one knows what's in hold for the future... my 3 cents
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