What is everyone's opinion on 15 year Mortgages vs 30 year Mortgages?
Sometimes there are great reasons to get 15 year mortgages, but when I see families on fixed income or barely any income struggling to try and pay off a 15 year mortgage it makes me wonder why. I've been taught to use the equity in your home as a money making vehicle.
You can just as easily get a 30 year mortgage and pay it off in 15 or less years either by using your refinance savings to reapply back into the loan or just by paying extra on the principle every month. That also gives you the flexibility of not having to make that big payment every month if something were to come up keeping you from doing so.
And so once you get this home paid off, what are you going to do with all that equity in your home???
I mean I've even had clients tell me they plan to move out of their home in the next 5 to 10 years, but they are wanting a 15 year mortgage??? Why!!!!
I work closely with financial planners that help my homeowners use the equity in their home to invest it wisely. Sometimes I put my clients on 30 years versus 15 years and the extra savings they use that to invest in things like college funds for their kids, savings plans and other income producing avenues that are doing good in the market.
Use Your Equity To Make Yourself More Money!!!
Im just curious what other loan officers think about the 15 year mortgage? The obvious advantage is you get a lower interest rate, but what else? Just opening up some diaolgue....
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