Title /blog/posts/2016/08/?format=rss A blog feed. en-US Tue, 16 Aug 2016 22:08:18 -0400 15 Years vs. 30 Year Mortgage - What's the Best Option? https://www.wandamooney.com/blog/posts/2016/08/16/15-years-vs-30-year-mortgage-what-s-the-best-option/ <p><img alt="" class="featured featured featured" src="https://s3.amazonaws.com/files.usmre.com/5577/blog/mortgage-choice.jpg" style="border-width: 1px; border-style: solid; margin-right: 0px; margin-left: 10px; float: right; width: 250px; height: 141px;">If you are planning on buying a home or refinancing and would like to know the&nbsp;difference&nbsp;between a 15 vs.&nbsp;30 year mortgage, this article explains the benefits of both.&nbsp;You do save an enormous amount of money if you can afford larger payments and pay off your home in 15 years or you&nbsp;can go 30 years and make extra principle payments.&nbsp;You can calculate the mortgage payments at <a href="http://www.BankRate.com" target="_blank">www.BankRate.com</a> or ask your lender to show you the difference.&nbsp;Feel free to give me a call at 413-337-8344 or send me an email at wanda@wandamooney.com if you have any guidance.&nbsp;</p> <h2>15&nbsp;or&nbsp;30&nbsp;years: What&rsquo;s the difference?</h2> <p>At first glance, the difference between a 15-year and&nbsp;30-year mortgage seems obvious: The former stretches your home loan payments over 15 years, the latter over 30. But you already knew that.</p> <p>But here&rsquo;s something you might&nbsp;not know: Since a longer loan life means you can make smaller payments, a recent survey found that 86% of home loan applicants opt for a 30-year&nbsp;mortgage.</p> <p>Here&rsquo;s how the numbers play out:&nbsp;If you purchase a $300,000 home with a 20% down payment, a 30-year (fixed-rate) loan at the going interest rate (currently&nbsp;3.68%), it will cost you&nbsp;$1,102 per month for 30 years. Get that same loan for 15 years, you&rsquo;ll be rewarded with a slightly lower interest rate (currently&nbsp;2.69%), but you&rsquo;ll have to cough up $1,622&mdash;$502 more per month.</p> <p>Bottom line? If you can&rsquo;t afford large monthly payments or are worried about not being able to in the future due to job loss, sporadic income, health issues, or whatever other&nbsp;curveballs might come your way,&nbsp;it&rsquo;s understandable that you&rsquo;d opt for a&nbsp;30-year mortgage rather than 15. The peace of mind alone could be priceless.</p> <h2>Benefits of a 15-year mortgage</h2> <p>What&nbsp;many homeowners forget to factor in is that a 15-year mortgage may cost more&nbsp;<em>now,&nbsp;</em>but it will save you major cash&nbsp;in interest payments down the road.</p> <p>&ldquo;A 15-year loan will save you a ton of money,&rdquo; says&nbsp;<strong>Casey Fleming</strong>, author of &ldquo;The Loan Guide: How to Get the Best Possible Mortgage.&rdquo;</p> <p>You might be surprised by just how much, so let&rsquo;s&nbsp;continue with&nbsp;the above example: For a&nbsp;$300,000 home purchased with a 20% down payment, a 30-year mortgage at&nbsp;today&rsquo;s&nbsp;<a href="http://www.bankrate.com/mortgage-groupb.aspx?market=44&amp;loan=230000&amp;perc=20&amp;prods=215,393,216,392&amp;fico=740&amp;points=Zero" target="_blank">average&nbsp;interest rate</a>&nbsp;(3.68%) will end up costing you a total of $456,708&mdash;that&rsquo;s in interest and principal&mdash;by the time those 30 years are up.&nbsp;By contrast,&nbsp;a 15-year&nbsp;loan at&nbsp;today&rsquo;s&nbsp;<a href="http://www.bankrate.com/mortgage-groupb.aspx?market=44&amp;loan=230000&amp;perc=20&amp;prods=215,393,216,392&amp;fico=740&amp;points=Zero" target="_blank">average&nbsp;interest rate</a>&nbsp;(2.69%) will ultimately cost you only $351,933.</p> <p>In other words, a 15-year mortgage will ultimately save you $104,775 in interest payments&mdash;serious money, which might add up to a very good reason to tighten your belt and give it a try. You can run your own numbers with&nbsp;<a href="http://www.realtor.com/mortgage/tools/mortgage-calculator/" target="_blank">realtor.com&reg;&rsquo;s mortgage calculator</a>&nbsp;to figure out which approach is right for you.</p> <h2>How&nbsp;to save money on a 30-year mortgage</h2> <p>If you can&rsquo;t afford making the higher payments on a 15-year mortgage but like the idea of saving on interest, there are other ways to make that happen, even if you have a 30-year loan.</p> <p>For one, most lenders don&rsquo;t prohibit borrowers from&nbsp;<a href="http://www.realtor.com/advice/finance/the-crazy-way-i-paid-off-my-mortgage-fast/" target="_blank">paying off a loan early</a>, so there&rsquo;s no reason you can&rsquo;t&nbsp;pay off a 30-year&nbsp;loan in just 15 years (or 20, or 25, or whatever you can manage). So if you do find yourself with extra money one month due to a bonus or tax refund, consider putting it toward paying off your mortgage early. You&rsquo;ll save a huge chunk in interest&nbsp;without sacrificing the sense of security that comes with knowing you can easily afford to make your&nbsp;monthly mortgage payments&mdash;and maybe occasionally a little extra.</p> <p><strong>Article posted on Realtor.com and written by&nbsp;Jamie Wiebe</strong></p> sellers buyers Lending Tue, 16 Aug 2016 22:08:18 -0400 Village of Shelburne Falls #1 Best New England Place to Visit https://www.wandamooney.com/blog/posts/2016/08/15/village-of-shelburne-falls-1-best-new-england-place-to-visit/ <p><img alt="" class="featured featured featured featured featured" src="https://s3.amazonaws.com/files.usmre.com/5577/blog/15593687142_59ffa1d42a_k-700x500.jpg" style="border-width: 2px; border-style: solid; margin-right: 10px; margin-left: 0px; width: 250px; height: 179px; float: left;">Congratulations to the Village of Shelburne Falls for making the #1 spot as one of the best hidden New England places&nbsp;that you must visit at least once by <a href="http://bit.ly/2aOLQ3a" target="_blank"><strong>OnlyInYourState.com</strong></a>.&nbsp;Being a native of the area I have witnessed this charming village transform&nbsp;into a fabulous place for those wanting to visit or relocate here.&nbsp;The picturesque Deerfield River meanders through two towns that are connected by an iron bridge and the <a href="http://bit.ly/2aV6bPP" target="_blank"><strong>Famous Bridge of Flowers</strong></a>.&nbsp;The ancient&nbsp;glacial&nbsp;potholes are within walking distance of the downtown and are a site to see. The street is lined with artisan shops, eateries, food markets and more!</p> <p><a href="http://bit.ly/2aV6Als" target="_blank"><strong><u>Click here</u> for more information about Shelburne Falls and the surrounding area</strong></a>!</p> Community Shelburne Falls Mon, 15 Aug 2016 19:08:35 -0400