The Great Debate:
Everyone wants a low mortgage payment and everyone wants to pay off their mortgage as fast as they can however combining the two takes some figuring out. As we all we have to pick which is more important and decide from there the best course of action when refinancing or purchasing a home. This is the debate many homeowners have and deciding which is more important is something all homeowners have to do.
First Time Home Buyer:
Let’s tackle this issue with them in mind first. If you’ve never owned a home you probably don’t fully understand the cost of maintaining a home and/or remodeling a home. Everything from brooms to sweep the floor to calling a plumber to fix a leak; these are expenses you need to be prepared for since their no longer is a landlord to call. My suggestion for first time home buyers is to go with a 30 year fixed. Give yourself a few years to fully understand the cost of homeownership and once you’ve grasped the costs involved consider a 15 year fixed rate mortgage.
Benefits Of A 30 Year Fixed Mortgage Rate:
The main benefits of a 30 year fixed mortgage rate is the flexibility it allows the homeowner in case something comes up. Wether it’s a job loss, an unexpected medical expense or even planned expense like a wedding; a 30 year fixed allows the homeowner to be better prepared for these sorts of expenses. Also the tax benefit is a bit greater (for some and this could change) than a 15 year fixed and lasts longer since you are paying more interest on a 30 year fixed mortgage.
Here are the important benefits of a 30 year fixed mortgage rate:
- Lower payment.
- Great flexibility with planned and unplanned expenses.
- Longer tax benefit (confirm with your CPA as to what your tax benefit might be.
- The difference in payment between a 30 year fixed and a 15 year fixed can be put to work somewhere else. Retirement, another property, college fund etc.
Benefits Of A 15 Year Fixed Mortgage Rate:
The main benefit of a 15 year fixed mortgage rates is the ability to pay off your home in half the time (compared to a 30 year fixed). You’ll be able to build equity much faster with a 15 year fixed rate mortgage, you’ll have a lower interest rate and you’ll pay less interest to the lender (compared to a 30 year fixed mortgage)
Here are the important benefits of a 15 year fixed mortgage rate:
- You’ll pay off your house much faster.
- Lower interest rate means less interest you’ll pay to the bank.
- Once your loan is paid off in 15 years you can put that money to work somewhere else while someone on a 30 year fixed will be paying for another 15 years.
The Lowest Mortgage Rate:
Day in and day out we work hard to bring the lowest mortgage rate to our clients. 30 year fixed mortgage term or a 15 year fixed mortgage term; we want to provide the lowest rate possible. We understand that it’s extremely important to them as every penny counts. So what do we do that other mortgage companies don’t?
First Step In Bringing The Lowest Rate To Our Clients:
We track the Mortgage Backed Securities market so we can inform our clients as to what is going on with mortgage rates and then we implement a strategy for locking (if the client wants to wait and lock). Most Loan Officers will tell you the 10y Treasury sets mortgage rates and nothing could be further from the truth. What sets mortgage rates? Mortgage Backed Securities, lenders operational costs and volume needs. In fact if a Loan Officer tells you the 10y Treasury sets mortgage rates I’d suggest your find a new Loan Officer.
Second Step In Bringing The Lowest Rate To Our Clients:
What else do we do? We’ve implemented the latest technology to help keep our costs down
Third Step In Bringing The Lowest Rate To Our Clients:
We don’t have loan processors, secretaries and regional manager bonuses to pay. From beginning to end you’ll work with one person; not 3 or 4 different people. That provides a more efficient process and you’ll always know who to call or email should you have a question
Which Mortgage Term Should You Chose?:
Deciding which mortgage term to chose is a difficult task however it’s always best to make sure that the mortgage payment is no too much of a strain on the monthly budget. I suggest to clients to pick the term that best suits their lifestyle in terms of how they spend the money the earn and their medium to long term financial goals. People are different and what’s good for one person/family may not be good for another. We’re happy to discuss in further detail the benefits and drawbacks to both the 30 year fixed mortgage and the 15 year fixed mortgage if needed.
JB Mortgage Capital, Inc.:
We offer industry low mortgage rates, one-on-one personal service and the latest technology to ensure your loan applications close fast. In some cases we can close in as little as 2-3 weeks and the usual time frame is 3-4 weeks from when we have all our clients documentation. Also; on some loans we do not require an appraisal which brings down the costs of doing the loan and allows for a much quicker closing. Veteran Loan Officer Kevin O’Connor has over 14 years in the industry and has worked with hundreds of homeowners and homebuyers. You can call him directly at 1-800-550-5538, contact him through our website or connect with him on social media: Twitter: Rates01 Reddit: Rates01 Instagram: Mortgagerates01 and Pintrest: jbmortgagecapital just to name a few.