Answer provided by Rafael Reyes, Originating Branch Manager at Cross Country Mortgage LLC.
Do you want lower monthly payments now or do you want to pay off your home faster?
That’s one of the primary questions to answer when deciding between a 30-year fixed mortgage or a 15-year fixed mortgage.
You have 15 years to pay off the full amount borrowed. Monthly payments are higher, but the interest rate is lower, the cost of the loan is less in the long run and your mortgage is paid off sooner.
Monthly payments are lower because they’re spread out over 30 years. Lower monthly payments can make it easier to afford the home you want, or give you more money to spend on other expenses or even use the extra cash to invest. However, you end up paying more interest over the life of the loan.
Here’s the difference between mortgage payments and costs using a hypothetical example of a $300,000 mortgage with a 5% interest rate (the actual rate would likely be lower for a 15- year):
|Whether you choose shorter or longer, the good news is that you have options. I’ll help you find the mortgage that’s right for you. |
Originating Branch Manager
CrossCountry Mortgage, LLC
37 N 15th Street, Suite 108
Brooklyn, NY 11222
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