Look at Our Featured Homes
Find Bradenton Homes for Sale
Bradenton Buyer Guide
Bradenton Seller Guide
Real Estate Investing Tips
Bradenton Real Estate News
Meet the Team and learn about our Highest Rated Service
Information about the Bradenton Area
Bradenton Real Estate Home
Contact us


Name:
E-Mail:

Phone:

Comments and Questions:

  A 30-Year or 15-Year Loan? - Back
When you get a loan to buy your home, you’ll have to make lots of decisions about where to get the loan, how much to borrow, and the various loan repayment options.

Two of the most popular home loans are, of course, the 30-year loan and the 15-year loan. Which one is best for you? There are distinct advantages to both the 30-year loan and the one that’s paid back over 15 years.

A 30-year fixed-rate loan helps you define your long-term budget by letting you know what your monthly house payment will be, what part of that is interest, and how much you’ll be able to write off on your taxes as a result. Unless your lender has specific restrictions, you can increase your monthly payments and decrease the amount of interest you pay over the life of the loan by shortening the repayment period.

When you find that your circumstances and budget will allow for a heftier house payment, you may want to check in with your lender and learn how that might be beneficial to you. In most cases, one extra monthly payment per year can turn your 30-year fixed-rate loan into a 20-year loan. You may want to pay a certain amount each month on the principal. This too will reduce the life of the loan.

A 15-year loan is, of course, paid off in half the time of a 30-year note. You’ll probably get a better rate, and the loan will be paid off much quicker with higher monthly payments. But while you can decrease the payback time on a 30-year loan, you can’t extend the payback period on a 15-year loan. The savings are greater and so are the demands of the term of the loan.

You’ll have to run the numbers with your lender to see which type of loan will benefit you in the long run. If you plan to sell in less than seven years, some lenders offer a “short-term fixed” loan that is amortized over 30 years, but actually paid in full over five to seven years, and offers a break in the interest rate as well.

Click Here to Return to Article Index.
Home View Homes Search Homes Buy A Home Sell A Home
For Millionaires Newsletter About Us Contact Us Area Info

Privacy Policy:
All information you share with us is kept strictly confidential and is never shared with anyone else. This includes your contact information including name, address, phone, and email address. We will only contact you regarding information you have requested from us. You may ask to have your contact information deleted at any time by using the "contact us" button on our website. Thank you.

Copyright © 2002-2016 Avery Realty Team

 

 

 

 

Avery Realty Team provides the highest rated full service in real estate services for Florida, Bradenton, Bradenton Florida, Bradenton Florida Real Estate, Bradenton FL real estate, Bradenton Real Estate, Bradenton Beach, Bradenton real estate for sale, Realtor Bradenton, Bradenton Realtor, Sarasota, Sarasota Florida, Sarasota Real Estate, Sarasota Florida Real Estate, Sarasota FL real estate, Sarasota, Lakewood Ranch, Palmetto, Palmetto Florida, Ellenton, Ellenton Florida, Manatee County, Manatee County Florida, Manatee County Florida real estate, Sarasota County, Sarasota County Florida, Sarasota County Florida real estate, real estate investing, MLS Bradenton Florida, Bradenton Homes, Sarasota Homes, Sarasota Properties, Sarasota Realtor, Sarasota MLS, MLS Sarasota, Sarasota Realtor, Lakewood Ranch Country Club, The Concession, real estate investing, real estate investment, real estate investing in Bradenton Florida, real estate investing in Sarasota Florida, new homes in Bradenton Florida, new homes in Sarasota, Florida.