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30 Year Home Loans

30 Year Home Loans

It used to be the first choice of most borrowers, because since the total payments are spread over a longer period of time with the interest rate set for the entire time of the mortgage. 30 year home loan rates are an industry standard but is it the right choice for you?

The 30 year home loan is an industry standard, but is it the right choice for you? Because the total payments are spread over a longer period of time and the interest rate set for the entire time of the mortgage. This was the first choice of most home owners.

As we mentioned, the plus side for a 30 year home loan is lower monthly payments. This attraction is somewhat dimmed by the fact that you pay thousands extra in interest. But, your interest is 100% tax deductible which does lower your after tax cost. It offers you some flexibility so that if your financial situation changes and you have more money you can pay it off in less than 30 years, this while keeping the low monthly payments. Your payments are smaller so in reality you can purchase a larger roomier home.

To show an example of the interest difference between 30 year home loan rates and one of the other rates. On a 30 year, 100,000 dollar loan using 7% interest rate your monthly payment of interest and principle would be $665.30 dollars. Over the next 30 years you will have paid $139,511.04 in interest alone. Now with a 15 year home loan rate on the same amount you will pay $871.11 per month and over the next 15 years, you would pay $56,799 in interest. This would save you $82,712 dollars.

If you have the will power to invest the savings from the monthly payments, it still could be a good choice to go with the 30 year mortgage. Especially if you can find an investment that the long term payoff matches or exceeds what you would save in a 15 year mortgage. Another factor to consider is how fast you want to accrue equity in your home or to own it out right. 30 year home loan rates take much longer to build equity.

30 year home loan rates are certainly attractive and the vast majority of home buyers get 30-year loans because that is the longest home loan available today. Experts agree if they could get a 35- or 40-year loan, they probably would. There are many other options to consider. Probably the biggest question you have to ask yourself when considering a loan is what are your financial goals? What loan plan will help you the most to reach that goal? It is clearly to your advantage to look into other loan options for the best loan available for you and your financial goals. It may surprise you that because of your personal situation there may be other plans more suitable for you.

Loans Home Year

While a 30-year mortgage will usually give you the lowest payments a shorter term mortgage will help you pay off earlier. A compromise would be to take the lower payment 30 year mortgage and make extra principle payments to shorten the life of the contract. This will give you both lower payments and earlier payoff. It is worth looking into to see if it is right for your situation.

30 Year Home Loans History & Civil Business Politics

I have the 40 year mortgage on my house. It was the only way I could afford to not live in the middle of a gang/druglord neighborhood. There is still some drugs in the neighborhood, but the people are very discreet. Getting stones thrown through your window and people beating eachother up with bats in front of your house is not the most desirable place to be.

Anyways, back to the mortgage. I had very good connections when purchasing my house. I had the district manager of my chosen bank handle my mortgage and he got me lower than principal, then lowered it further two days before I signed for the house.

When I bought the house, my partner and I were paying into it equally, but he's been unemployed and between jobs for a year now (long story), so at least I can afford the payments on my own. I know that eventually my partner will be in a steady job, and even if not, I will get a promotion over the coming years and another promotion or more further along the line, so if anything, it will get easier. Then I can start paying off the house faster.

I honestly don't care about the huge amount of interest. My house is very dear to my heart. I grew up with nothing, and to have this beautiful house in a quiet, peaceful area is more than I could have ever asked for. The added interest and long-term mortgage mean almost nothing. If I did buy a smaller place, so that I could have a smaller mortgage, I would have ended up buying this house later on down the line anyways. Plus, I would have a hell of a time selling a smaller place in this city. If I EVER decide to sell my house, I'm not kidding, it would be sold in two days. Three houses (not including my own) in the same neighborhood, same type of house, were sold within 1 to two days.

The 40-year mortgage enabled me to buy a beautiful house and live in it, not sit around waiting for it.

Loans Home Year

I took the 30 year mortgage out on my home. I did this to get into the house I will probably not move from. I am happy with the house and the mortgage. I know I can refinance for a shorter term and make it mine sooner but right now with everything that is going on I am quite happy with it.