Is a 30 Yr. Fixed Loan the Best Option for Your Atlanta Mortgage?

Here at Auburn Mortgage in 30141, we are always looking for ways to help clients save $1000s in interest costs for their loans. We had a recent discussion with a client about the advantages of a 15-year fixed mortgage over a 30-year fixed mortgage. When we ran some quick numbers, the money saved was staggering. We were thinking that more people should consider this excellent forced savings plan.
Has your mortgage agent or loan officer ever asked you about how much you could afford to pay if it was going to mean you would save over $100,000 through the life of your loan? Everyone always wants lower rates, right? What most people don't realize about a 15-year mortgage product is that the interest rates available are often anywhere from .75 - 1.125 interest points less than their 30-year fixed counterparts, but the monthly payment increase is not that significant. In the example we were looking at for a $200,000 loan, it was ~$400 more per month. While these numbers will change from situation to situation and you will need to reference a specific program to get an exact quote, you could literally build tremendous equity and save significant money by using this type of mortgage package.
Some people would question if this is a good use of the money. In this situation, you essentially pay in ~$75,000 in the 15-years, but you save almost double. In that period, it’s similar to getting close a 100% return on your investment. How many other investment can you say that? This forced savings program is perfect if you can afford the additional amount each month. It is also a great way for parents to help their children secure their financial future by paying the extra amount.
Looking for a lower interest rate for your refinance program? Depending on how much equity you have in your current property, you may actually be able to shave more years off your existing loan by converting to a 15-year package. Call the office today for a free mortgage consultation and to see how Auburn Mortgage can help you with your personal financial management. We have helped people in Cobb, Paulding, Cherokee, Douglas and Carroll counties and are happy to work our schedule to fit yours
John Wetmore
Mortgage Consultant
770-505-0466
John@auburnmtg.com

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