Are You in a Position To Take Advantage of a 15 Year Fixed Mortgage Rate?
Many home owners have taken advantage of the low interest rates in today's market. We are seeing interest rates at levels that have not been experienced since the 1950's.
If you are a home owner with a 30 year mortgage at or above 6.5% then follow my numbers.
A 15 year mortgage will build your equity much faster and will allow you to pay off your property much sooner.
Lets say you have a $200,000 mortgage at 6.75%. Your principle and interest payment is $1,297. If you refinanced into a 15 year mortgage at a rate of 3.875%, then your priciple and interest payment would only increase by $169/month. Your new monthly P&I payment would equal $1,466.
Notice how this will pay down your principle balance much sooner
After one year of the 30 year fixed you have paid your balance down by $2,316. With the 15 year mortgage you have paid the balance down by $7,486.
What about after 5 years?
With the 30 year note you have paid the balance down $15,491 but with the 15 year, you have paid the balance down $67,458!!! This is incredible. By spending on $169/month for 60 months, a total of $10,140, you have paid your principle down by an extra $51,967.
If you are in a 30 year fixed above 6.5%, you need to speak with your mortgage consultant about your options.
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