30 Year Mortgage VS 15 Year Mortgage

By
Real Estate Broker/Owner with Keller Williams Team Realty

So you want to save the interest on your home mortgage.

Mistake No. 1 - Take out a 15 year mortgage.

    Better alternative is a 30 year mortgage with a life insurance policy.

What's the catch - 1. Calculate the monthly loan fee for the purchase for a 30 year amortization.

                          2. Calculate the monthly loan fee for the purchase for a 15 year amortization.

                          3. Take the difference in the mortgage fee and find a life insurance policy for that amount.

This fee difference when used to purchase a whole life policy will enable the borrower to pay off their 30 year mortgage in about 17 years.

What is the benefit: A. Pay off mortgage in less than 30 years. B. Take advantage of deducting the interest on a 30 year mortgage for 17+ years.  C. If house is sold in less than 17 years, one still has a life insurance policy producing income that is tax free.

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Rainmaker
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Marilyn Harrell
ReMax Riverhaven - Beaverton, MI
Wixom Lake - Beaverton MI
Interesting view on interest!!! Sounds like good advice.
Apr 05, 2009 08:53 PM #1
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Rainmaker
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David Spencer

Chicago Area Commercial-Residential R.E.

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