Utah Home Mortgage Specialist

One of the most popular advantages to researching home mortgages online is the ability to comparison shop at your own convenience. This is important because many people work long hours and often find they are not able to meet with lenders during regular business hours because of job restraints. The Internet, however, is open 24 hours a day and allows you to research your options, make important calculations or receive online quotes at any time of the day through the use of automated systems.

When shopping for your next home mortgage you can take your time comparing the quotes received from lenders online instead of feeling pressured to provide an immediate response. While this may give you some additional time, remember you do need to act relatively quickly to lock in an interest rate.  Interest rates are often time sensitive in nature and cannot be guaranteed for long periods of time.

People who are planning to buy or re-finance their home mortgage may find the Internet to be a very worthwhile resource. The Internet is useful because it can give the you a wealth of information as well as the ability to compare different rates from different lenders at your convenience. While these options have made financing a more convenient process there is more potential for danger. However, if you exercise a small amount of common sense in using the Internet for financing information often find there are not any additional risks.

A major advantage to financing with reduced loan terms say a 15 years instead of 30 years is the ability to gain equity in the home at faster rate. This is especially true if you were or are not able to put a sizable down payment on your home mortgage when you purchase your home. The amount of the equity in the home is equal to the amount of the principal loan which has already been repaid. When you pay your monthly payment you are paying a combination of principal and interest  their monthly payments.

Take two different loans, one 30 year and other 15 year, both for $300,000 each with a 5% interest rate.   The amount of the principal which is repaid on each month for each mortgage will be different. With the 15 year mortgage you will pay $761.92 more toward principal each month.  In the first year alone you will gain $9,337.07 in additional equity over the 30 year fixed. Gaining equity in the home quicker is ideal because it moves you closer to truely owning your own home.

When my husband and I decided to take advantage of these historically low interest rates, I suggested to him that we convert our loan term to 15 years.  He hesitated for a moment the higher payment was not particularly attractive.  Psychologically it is not what he expect when decided to refinance our home mortgage.  But when I showed him that we would be paying an additional $8000 towards our loan each year and half as much interest he was SOLD!! The feeling that you are adding that much equity to your home each year is priceless.  If your budget can handle the slightly higher payment you will be better off for choosing a shorter term on your loan.

Call me today I will provide you will loan amortizations for 30 year and 15 year mortgages.

One advantage of shortening the loan terms, which cannot be denied, is the ability to repay the loan quicker. In choosing a 15 year term, you will  completely repay the home mortgage a full 15 years earlier than you would with a 30 year loan. This is advantageous because it can enable you to enjoy living mortgage free a full 15 years earlier.  This ability can have a giant impact on your quality of life. 

Don’t believe me?

Lets look back at the example I used earlier this week.  Imagine you have a $300,000 mortgage at 5% interest rate and you choose a 15 year term your payment will be $2,372.38.  Your neighbor has the same $300,000 mortgage at  a 5% interest rate but has choosen a 30 year term. His payment will be $1,610.46.  Both you and your neighbor then makes every payment ontime each month for180 months (15 years).  Now think about month 181. You no longer have a mortgage payment. Your mortgage is paid off, GONE!  But your neighbor still needs to make his payment of $1610.46.  For the next 180 months he is going to be required to continue making this payment or they will take his home away.  At the end of 180 months he will have made $289,882.80 in total payments.  This represents a combination of principle and interest. But this number also represents the amount you keep in your account over those 15 additional years.

What could you do with $289,882.80?

Once the mortgage is fully repaid, you may be able to make sizable contributions to your retirement plan.  Or you may even be able to afford to retire.  You could find yourself with the financial means to travel, assist family in educational pursuits or invest in a small business. 

Find out how you can create opportunities for yourself and your family tomorrow with the choices you make TODAY!  Call me know for your free analysis.

Financing with shorter loan terms is definitely not an easy option but if you have a large monthly cash flow or have received a sizable promotion at work you might be able to consider the possibility of decreasing your home mortgage terms from 30 years to 25, 20 or 15 years.

The result of this type of financing will be a significantly higher monthly payment which is not conventional but can be worthwhile because of the future savings. In particular this type of financing option is a viable solution if you can afford the increase in monthly payments and you have an overall goal of reducing the amount of interest you pay over the course of the entire loan.

Reducing the amount of interest is critical to the overall savings plan you can drastically reduce the amount of interest paid over the course of the loan. Consider two loans each begin with a loan amount of $300,000 and both with a 5% interest rate. One loan is to be repaid over a period of 15 years while the other loan is to be repaid over a period of 30 years. The interest paid on the 15 year loan is $225,000.  The interest paid on the 30 year loan is $450,000.  It is clear that in this example, the homeowner with the 30 year mortgage will pay more during the course of the loan.

How much interest can we save you?

Contact me know for your free no obligation mortgage anaylsis.