Should I get a 15 Yr Mortgage?
Posted on | July 6, 2009 | No Comments
Getting a loan for 15 years is a great way to reduce the interest you will pay over the timeframe of your loan. With that said, it is also more cash out of your pocket each month so you will need to make sure you can easily handle the monthly payment. If that is not a problem then getting a 15 year loan is a great thing.
I will note that there are many people refinancing today out of a 15 year loan back into a 30 year loan because of the economy. If you feel that you may have to change jobs or might loose your job you may not want to get a 15 year loan. The good news is you can take 7 years pay off a 30 year mortgage by paying one additional principle and interest payment per year. This takes about 25% of the interest off the note as well. So if you don’t feel comfortable with the higher payment on a 15 year mortgage, get a 30 year mortgage and pay the additional principle per month or during the year.
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