Decisions – Decisions
15-yr vs. 30-yr Mortgage
As with anything, you are going to find both pros and cons when it comes to a 15-yr mortgage versus a 30-yr mortgage. So, which one is right for you?
A 15-yr mortgage can mean a larger monthly payment but you will pay off your debt quicker. This option is good for those looking to reduce the amount of interest they pay over the life of their loan. It also is attractive to those who can easily make a larger monthly payment or those nearing the end of their working years and want to pay off their mortgage before they retire.
A 30-yr mortgage can mean a lower monthly payment, allowing you to use the additional funds for other projects and unexpected goals. Also, with a 30-yr mortgage, the homeowner always has the option to pay more than the minimum monthly requirement. And if the homeowner may have differing levels of income each month, the lower required monthly payment for the 30-yr mortgage can give a little extra breathing room should income be reduced.
If you want to hear more about 15-yr mortgages versus 30-yr mortgages, click the link at the bottom of this newsletter for the most recent Mortgage Gumbo podcast. Or if you would like to compare how much your monthly payments will be for each mortgage type, contact Dwayne Stein at 985-612-1900. Dwyane can help you to weigh your options to come up with the term that best fits your needs.