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How 30 Year Loans Differ from 30/15 Mortgage Loans

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millerja9 Joined: 19 Jun 2009 Posts: 100 0.00 Dollars($)	Posted: Wed Dec 09, 2009 10:14 am    Post subject: How 30 Year Loans Differ from 30/15 Mortgage Loans Like 0 Dislike 0 Why do lenders offer a 30/15? Where can I get a 30yr fixed loan?
jveenstra Community Expert Joined: 10 Nov 2008 Posts: 1310 Location: River Edge, New Jersey 274.62 Dollars($)	Posted: Wed Dec 09, 2009 2:38 pm    Post subject: Balloon Like 0 Dislike 0 Lenders offer a 30/15 because the rate is often a little better than straight 30 year fixed. Statistically, most people keep a mortgage for seven years and most homeowners live in the same house for 14 years, so, they never get to the 15 year balloon part. The advantage is on larger loans. If your loan is under $417,000 forget the balloon. _________________ John Veenstra, Sr Mortgage Consultant Approved Funding Corp Licensed NJ NY CT PA 201-833-0123x278
marga1511 Joined: 13 Nov 2009 Posts: 42 0.02 Dollars($)	Posted: Sun Dec 13, 2009 12:04 am    Post subject: Like 0 Dislike 0 30/15 means thirty years mortgage payable in 15 years. This is type of Balloon mortgage.In this case you have to do payment for 15 years and remaining principle can be paid in single installment.This is single balloon payment.Thus loan is amortized over a longer period of time than the actual term of the loan. This type of loan can benefit some consumers for several reasons. 1) Interest rate are less that plain 30 years mortgage. 2) You can save money for final single balloon payment. 3) Flexibility in mortgage. 4) Only priciplal amount has to pay after 15 years. 5) Saving more money in terms of interest paid during tenuare. 6) Can refinance loans at lower interest rates
marga1511 Joined: 13 Nov 2009 Posts: 42 0.02 Dollars($)	Posted: Sun Dec 13, 2009 12:13 am    Post subject: Like 0 Dislike 0 Most of the times everyone prefers 30 years fixed loan. As the problem with paying off balloon payment when it comes due, they will be forced to refinance their loan. It is frequently better to lock in a rate and a payment that will stay the same rather than thinking in future on interest rates being lower when your 15 year fixed term ends on a 30/15.

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