In an age where we are taught that leveraging money is the way to go. There are still some of us out there that just want to own our homes outright.
Mortgage rates are at historic lows. If your goal is to pay off your home in the long run this is a great market to look at some fixed rate refinance options. Especially if you are in an adjustable rate loan.
Fixed loans that you are paying off principal and interest each month are a great way to have security and pay your mortgage off. There are many different terms you can choose based on when you want to have your loan paid off and what you afford monthly.
If you can afford a shorter term fixed loan you will save a TON of interest over the life of your loan. If you can afford a higher payment but want to be safe you can get close to the same amount of interest savings by taking a 30 year fixed and over paying each month. Any money you pay on top of your payment goes directly to principal and drops payments off the back end of your loan.
In most cases if you paid the same monthly payment as you would have on a 15 year fixed loan but had a 30 year fixed loan you would pay your home off about 16 years. This is one extra year of payments if you compare it to the 15 year fixed but that way you always have the flexibility of just making your regular payment if you need some extra money from time to time.
If you can be disciplined and allocate extra money each month you will save thousands in interest payments.
Ideally you may want a 15 year fixed but may not qualify for it. This is a great way to get around this and still achieve financial freedom.
If you are in an interest only loan but your goal is to own your home and have no mortgage now is a great time to get a low fixed rate and start paying it off. If you have been in a fixed rate mortgage for more than 6 years you may want to consult a professional before touching your loan because mortgages are frontloaded with interest and if you have already paid more than 5 years of payment heavily weighted in interest it may not make sense to start all over again no matter how good the rate is. - 20896
Mortgage rates are at historic lows. If your goal is to pay off your home in the long run this is a great market to look at some fixed rate refinance options. Especially if you are in an adjustable rate loan.
Fixed loans that you are paying off principal and interest each month are a great way to have security and pay your mortgage off. There are many different terms you can choose based on when you want to have your loan paid off and what you afford monthly.
If you can afford a shorter term fixed loan you will save a TON of interest over the life of your loan. If you can afford a higher payment but want to be safe you can get close to the same amount of interest savings by taking a 30 year fixed and over paying each month. Any money you pay on top of your payment goes directly to principal and drops payments off the back end of your loan.
In most cases if you paid the same monthly payment as you would have on a 15 year fixed loan but had a 30 year fixed loan you would pay your home off about 16 years. This is one extra year of payments if you compare it to the 15 year fixed but that way you always have the flexibility of just making your regular payment if you need some extra money from time to time.
If you can be disciplined and allocate extra money each month you will save thousands in interest payments.
Ideally you may want a 15 year fixed but may not qualify for it. This is a great way to get around this and still achieve financial freedom.
If you are in an interest only loan but your goal is to own your home and have no mortgage now is a great time to get a low fixed rate and start paying it off. If you have been in a fixed rate mortgage for more than 6 years you may want to consult a professional before touching your loan because mortgages are frontloaded with interest and if you have already paid more than 5 years of payment heavily weighted in interest it may not make sense to start all over again no matter how good the rate is. - 20896
About the Author:
The idea of owning your home free and clear is very exciting. There are many loan options that can help you achieve this goal. The next step is find out what those loan options are.
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