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The Pros and Cons of a 15-Year Mortgage

This excerpt sheds light on the advantages of a 15-year mortgage.

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The Pros and Cons of a 15-Year Mortgage

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  1. The Pros and Cons of a 15-Year Mortgage

  2. Advantages of a 15-Year Mortgage • Here are some of the advantages of a 15-year mortgage. • Less in Total Interest • Lower Interest Rate • Lower Fees • Forced Savings

  3. Example of a 15-Year Mortgage A mortgage sum of $250,000 over 30 years at a rate of 4% would cost $429,674 in principal and interest payments by the end of the loan, and the total interest would be $179,674. The same loan and interest rate over 15 years would cost $332,860 by the end of the term, with a total interest of $82,860.

  4. Why Should I Get a 15-Year Fixed-Rate Mortgage Instead of a 30-Year? If you think you can afford a larger monthly payment that comes with a 15-year fixed mortgage, it may help you pay off the property, freeing up funds for retirement. You will spend less in interest over the life of the loan compared to a 30-year mortgage.

  5. What Are the Differences Between 15-Year and 30-Year Mortgages? The monthly payments of a 15-year fixed mortgage are higher than a 30-year mortgage. The latter allows a borrower to stretch out payments over a long time and keep more of their monthly earnings. However, you have to pay more interest.

  6. How Do I Pay Off a 30-Year Mortgage in 15 Years? There are a couple of ways to pay down a 30-year mortgage in 15 years. First of all, you may consider refinancing your current mortgage into a 15-year mortgage. Alternatively, you can make extra payments towards the principal amount or make biweekly payments equal to an extra mortgage payment per year.

  7. Thank You Visit: www.altfn.com

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