Report below from Venessa Ward, Sr. Mortgage Banker-Pacific Residential Mortgage
Mortgage Rates Have Fallen to an All New Low!
So why should buyers consider a 15-year mortgage over a 30-year mortgage? SAVINGS!
Rates are lower. 15-year mortgages can be half a percent lower in rate or more depending upon investor and program.
Increased Principle Reduction. After the first 5 years of the loan, a 15-year mortgage will have 25% of the debt paid off vs. only around 8% with a 30-year term.
Reduced Total Interest Paid. 30-year mortgages typically have a much higher premium in interest payments. A person with a 15-year mortgage could pay less than half the amount of interest on the same loan amount, even at the same rate.
Considering most first time home buyers move within the first five years of owning their home, a 15-year mortgage allows them to build more equity by the time they are ready to sell or upgrade.