Wanna Save $108,360 On Your Loan?

Posted by on May 19, 2011 in Blog, Real Estate Tips | 0 comments

Today’s blog post is a guest post by Denis Moore a loan specialist at First Place Bank in Dublin.  Denis specializes in residential lending including construction loans. 

Fiscal Responsibility Meets Mortgage Lending
By now everyone is aware that mortgage rates continue to be at historic lows, but what you may not be aware of is exactly just how low 15 and 10 year fixed rates are right now and how much interest this will save a responsible borrower over the life of the loan.

Yes, your payment will be higher on a 15 year and a 10 year fixed rate mortgage but, the question for you is, is it worth it for you?

THE NUMBERS:
$200,000 loan at 4.625% on a 30 year fixed rate = Payment of $1028 P&I per month*
This will result in $370,080 in total payments over the life of the loan.
$200,000 loan at 3.750% on a 15 year fixed rate = Payment of $1454 P&I per month*
This will result in $261,720 in total payments over the life of this loan
This is a saving of $108,360 over the life of the loan.  WOW!  Would you be willing to pay a little more each month to save $100k+?

What To Do:

When considering your budget for buying a home, consider looking for a home that you can comfortably make the payment on a 15 year mortgage, meaning you might have to buy a little less home but you can save yourself thousands.

If you already have a mortgage, additional savings can be made right now by refinancing from a 30 year mortgage to a 15 year or from a 15 year mortgage down to a 10 year due to the fact that short term money seems to be what is “hot” right now in our economy.

I am not suggesting that this is the best thing to do for everyone but if you are looking long term to make the most of your money this is something to think about.

Contact Denis for all your mortgage needs: 614-397-4087 or DMoore@fpfc.net

* Rates apply to qualified borrowers and are subject to change as the market adjusts. Payments do not include taxes and insurance and payments have been rounded to reflect whole numbers.

Shanna Lafontaine is a Realtor who works the Dublin, Hilliard, Powell, Worthington, and surrounding Columbus areas helping both Buyers and Sellers.

Shanna Lafontaine is a Realtor with RE/MAX Affiliates who works the Dublin, Hilliard, Powell, Worthington, Westerville, Delaware and surrounding Columbus areas helping both Buyers and Sellers.

Shanna Lafontaine, LLC© 
RE/MAX Affiliates Inc. 7239 Sawmill Rd. Ste 210, Dublin, OH 43016

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