Thanks to the financial crisis more homeowners than ever before are choosing to pay off their homes quicker and are choosing 15 year mortgages instead of 30 year mortgagesbecause they want the financial security of paying their home off quicker and the freedom that will come from not having to pay a mortgage when they are older.
Something To Think About
Besides the freedom that will come from paying off their mortgage quicker, an Orange County homeowner will also be able to save on their interest payments as well. even as much as $100,000 or more if they were to refinance with a current market interest rate of 3.375% over a 15 year mortgage. Another reason to consider paying off a mortgage in 15 years instead of 30 is that it will enable the homeowner to build equity in their home much quicker. For example: An Orange County homeowner who chooses a 30 year mortgage loan of $200,000 at 5.25% interest would only accumulate just under $40,000 in equity once they reach the 10th year of their mortgage loan. Compare that to a homeowner who chooses a 15-year mortgage loan at 3.375% interest, they will have acquired $129,000 in equity after just 10 years into their mortgage loan.
Make Sure You Can Afford It
Anyone who is considering buying an Orange County home should make sure they can afford a 15 year mortgage before they commit to it by calculating their income and expenses and making sure that they can afford their mortgage payments so their mortgage loan doesn’t become distressed. To learn more about the benefits of a 15 year mortgage vs. a 30 year mortgage loan contact the friendly and experienced team of top Orange County realtors at Fred Sed & Associates today at (949) 272-0125.