Secrets your banker won't tell you.

Mortgage and Lending with Leader One Financial 164545

Secrets your banker won't tell you.

Low interest rates, a newly recovering housing market and eager sellers have made now a prime time for buying a home. There are a number of different mortgages to use to make the buying experience fit your needs and budget. The 25 year mortgage and the 30 year mortgage are two of the more popular choices for home mortgages.  To get your Mortgage started click here to get pre-approved!
Secrets your banker won't tell you.
The 25 Year Home Loan

Often a 25 year mortgage is available with a lower interest rate than the 30 year mortgage. Lower interest rates can usually balance out the payments so that even though you will be making fewer payments for the duration of the loan you will not be making larger payments.

Paying out the mortgage over 25 years means you will pay thousands of dollars less in interest. Just the five year difference can make for substantial savings. A 25 year loan will also allow you to build equity in your home sooner than the 30 year loan.

Using a 25 year loan means that you could refinance your existing 30 year mortgage without having to extend the terms of the loan. All the progress that you have made toward paying off the loan does not have to be lost in a refinance situation.

Choosing a 25 year loan will mean that you will be debt free at least five years sooner that you would be choosing other traditional loan terms. During these tough economic times, the idea of being debt free is one that many people are working towards.

The 30 Year Home Loan

The 30 year loan is one of the most traditional terms for home loans in today's market. Most all institutions in the primary and secondary mortgage market are set up for these types of loans. This means that you will have more choices as to where you want to have your loan serviced.

Choosing a 30 year loan will give you the ability to stretch out payments for a longer period of time. This will result in smaller monthly payments which can make it easier on consumers during tough economic times or it could mean that you will be able to afford more house by going the 30 year route.

The 30 year home loan is often a little higher in percentage than other shorter terms but the amount is usually less noticeable with the 25 year loan than with the 15 year or even the 20 year.

Having smaller payments each month with the 30 year home loan could give you the flexibility to make an extra payment each year. This one extra payment could help you reduce the term of your 30 year mortgage by as much as eight years.

Which Mortgage is Best?

Each mortgage option has some benefits to consumers. Finding the one that best meets your needs may take some time and research. Talk to your lender to see which mortgage options are available and then balance the pros and cons to come up with the right choice for your needs. click here to get pre-approved!

Secrets your banker won't tell you.

Posted by

Darren Copeland | Home Loans | Lee's Summit MODarren Copeland, Vice President LeaderOne Financial

4967-B NE Goodview Circle, Lees Summit, MO 64064

(816) 268-4025

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