|
|
|
|
|
WEICHERT, REALTORS� - SouthShore
Phone
(813) 649-1002
Fax
(813) 649-1012
Toll Free
(888) 344-6873
E-Mail Us
237 Apollo Beach
Apollo Beach, FL 33572
|
|
|
|
|
|
|
|
|
WEICHERT, REALTORS� - SouthShore
Questions & Answers
Get the answers on home selling and buying.
|
|
15, 30, & 40 Year Loans - Q & A
|
Q:
|
What about a 15-year v. 30 year loan?
|
|
A:
|
The difference in payments and overall savings between a 15-year fixed-rate loan and a 30-year fixed-rate loan depends on the interest rate and the loan amount. Using a $100,000 loan and 7.25% interest rate as an example, monthly payments on the 15-year note would be $912.86. Monthly payments on a $100,000 loan at 7.25% fixed for 30 years would be $682.18. The 15-year note offers the opportunity to save considerable money over the life of the loan, since the period of amortization is half that of the 30-year note. This means that the total interest paid on a 15-year note as compared to a 30-year note is significantly less. However, calculating the overall savings of the 15-year note over the 30-year note depends on several individual circumstances, such as the borrower's changing income status.
|
|
|
Q:
|
What about splitting my mortgage in two and paying bi-weekly?
|
|
A:
|
Some people set on paying off their home loan early and reducing interest charges opt for a biweekly mortgage. Monthly payments are divided in half, payable every two weeks. Because there are 52 weeks in a year, the program results in 26 half-payments, or the equivalent of 13 monthly payments per year instead of 12. Using the biweekly payment system, a homeowner with a $70,000, 30-year biweekly mortgage at 10 percent interest could save $60,000 in interest and pay off the balance in less than 21 years.
|
|
|
Q:
|
Are 40-year mortgages a good idea?
|
|
A:
|
Smaller monthly payments are the primary advantage of adding 10 years to the traditional 30-year mortgage, but real estate experts say the shorter-term loan usually is more beneficial for the home buyer. The drawback becomes apparent simply by calculating the cost of additional interest payments, which can total thousands for a few dollars difference in mortgage payments.
|
|
Copyright 1999 Inman News Features
|
|
|
|
|
Home Advice
Get the answers on home selling and buying.
|
|
|
Independently Owned and Operated
Copyright �2000-2006 Homes.com, Inc. All Rights
Reserved. Privacy Policy, Full Terms
and Conditions.
HOMES.COM
is one of the
largest Internet real estate sites with hundreds of thousands of homes for sale and apartment rentals with photos,
descriptions, and relocation services. The advertisers and publishers are not responsible or liable for misinformation,
misprints, or other errors. All information provided is deemed reliable but is not guaranteed and should be independently
verified. Properties subject to prior sale or rental.
templates/weichert-office-enhanced-02
|
|
|
|
|