15 Year Fixed Mortgage
You want to save as much as $100,000. or more towards retirement? Guaranteed! No market fluctuations. Change your 30 year fixed to a 15 year fixed. With 15 year fixed as low as 4.25% and APR’s only 4.45% as of today, 15 year fixed are a great way to save many thousands in interest and payments. How can you save $100,000. or more? Review the following numbers:
$100,000. loan – If someone is 2 years into a 30 year loan, they have 28 years or 336 payments remaining in mortgage payments. If the mortgage was $103,000 2 years ago at 6% (the approx. average rate 2 years ago), the payment would be $617.54.. That means $207,492. in remaining payments ($617.54 x 336 payments = remaining payments). A new $100,000. loan at 4.25% has a 15 year payment of only $752.28 per month. That means remaining payments (752.28 x 180 =) would be only $135,410.. That means going to a 15 year fixed loan would save you $72,081. in total payments!!! Plus your home would be FREE and CLEAR in just 15 years instead of 28 years. The payment increase to go to 15 years is NOT double, it’s only $135. more per month. A small price to pay to guarantee you a savings of $72,000.+ in mortgage payments. That certainly has out performed most 401K’s and IRA’s the last 15 years, with NO risk. Let’s look at a larger loan amount.
$150,000. loan - 2 years into a 30 year loan (336 payments remaining). If the mortgage was $155,000. 2 years ago at 6% (the approx. average rate 2 years ago), the payment would be $929.30.. That means $312,245. in remaining payments ($929.30 x 336 payments = remaining payments). A new $150,000. loan at 4.25% has a 15 year payment of only $1,128.42 per month. That means remaining payments ($1,128.42 x 180 =) would be only $203,115. That means going to a 15 year fixed loan would save you $109,129. in total payments!!! A huge amount of GUARANTEED money over the life of your mortgage, with only a small payment increase. That is a solid retirement savings plan. The larger the loan amount, the greater the savings, especially if your current mortgage rate is over 6%.
Take advantage of the huge savings and the low rates of the 15 year fixed loan. Let an experienced mortgage professional run the numbers for you. You could save over a $100,000.. Plus, if you are 40 years old, as an example, you could have your home FREE and CLEAR by age 55, instead of age 68, like in our above example. Ask yourself this VERY important question. Do you want a mortgage payment AFTER you retire??? If not, think strongly about the 15 year fixed mortgage.
-Gary Schoenholz – Loan Officer Manager – Horizon Financial, Inc. 15+ years of mortgage experience, 1000+ loans closed. 864-979-1111. www.GaryTheMortgageExpert.com website.
