Tuesday, June 18, 2013

Fixed Rate Mortgages: 15 year versus 30 year loans.

Depending on your situation, the best option for you might be a 15 or a 30 year fixed rate mortgage. Each has its advantages. With a 30 year fixed mortgage you get a long term loan that the changes in the market will not affect. Because it is a longer loan, the monthly payments are lower and more manageable. This type of loan also can reduce some of your federal income tax because you may be able to write the interest off. But because this is a longer term loan, the interest rate is higher than a 15 year loan. A 15  year loan you are able to build equity twice as fast and have a lower overall interest charge.

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