Choosing The Right Home Loan

Authored By: Terry Mickelson

When shopping for a residential mortgage loan, most homebuyers simply focus their attention on the mortgage interest rate. At http://www.mortgagesort.com, they watch mortgage rates daily, making note of any movement in the mortgage rates, trying to predict a trend in what direction it looks like rates will move in the upcoming weeks or months.

The mortgage rate paid by homebuyers is clearly an important factor but it is only one element that will determine your monthly mortgage payment.

Another important factor (that you can control) that will play a part in determining your mortgage payment is the duration of the home mortgage loan (for example 30 years vs. 15 years).

Amortizing your home loan over 30 years is standard, but there are other options that will play a big part in your monthly payments as well as how quickly you build equity in your home.

If you amortize your home loan over 15 years, for example, your mortgage payment will be higher but you will build equity more rapidly and also be able to find a lower interest rate. Assuming that you could lock in at an interest rate ½ point lower when going with a 15 year note your monthly payments would be about 35% more, which sounds like a lot but your interest expense over the duration of the loan will be about 60% less and could save you hundreds of thousands of dollars in the long run.

In summary, a 15 year mortgage loan will reduce the total interest you pay and accelerate up the rate in which you build equity in your home, regardless of the interest rate (even though a lower rate will indeed be in reach when amortizing over 15 years vs. a standard 30 year fixed rate mortgage). If your budget allows you to finance your home purchase over 15 years, it is something you should certainly consider. In the long run it will save you thousands.

Sidney Morgan, MBA has 11 years in financial services. Mortgagesort.com is a consumer resource site offering mortgage resources and shopping information for the residential homebuyer, independent reviews of leading mortgage lenders, and access to comparison mortgage quotes. Our information and services are free of charge. www.mortgagesort.com

Article Source: http://www.FinanceNook.com
Your One-Stop Quality Finance Article Source

Home | Loans | Mortgages-refinance

Read Additional Related Articles from the Mortgages-Refinance Category

Listed below are more articles related to the above article.

People interested in the above article "Choosing The Right Home Loan" are also interested in the related articles listed below:

A New Mortgage Elimination Scam - By : Jeanette Joy Fisher
Self Certificate Mortgages – Prove Yourself! - By : Joe Kenny
Fixed Rate Mortgages – Know Your Rate! - By : Joe Kenny
Remortgage And Its Advantages - By : Amanda Thompson
Tips for Mortgage Refinancing and Debt Consolidation - By : Natalie Aranda
Adjustable-Rate Mortgage Payment – Things You Need To Know - By : James Calvin
Growing Problem In Real Estate - Mortgage Fraud - By : Glenn Ginsburg
Finding The Right Mortgage Company - By : James Calvin
Finding The Best Equity Home Loan Rate - By : Oliver Turner
Mortgage Lenders And How To Find Them - By : James Calvin

Read more related articles in Home | Loans | Mortgages-refinance

Return Home

FinanceNook.com Home

Featured Sites

Internet Marketing
Website marketing strategies and tips for promoting a business online

Small Business Marketing
How to get more customers or clients than you ever dreamed possible

Social Bookmarking

Bookmark on del.icio.us

Popular Articles

RSS Feeds

FinanceNook.com Home | Top of Page

United States of America . United Kingdom . Canada . Afghanistan . Albania . Algeria . American Samoa . Andorra . Angola . Anguilla . Antarctica . Antigua & Barbuda . Argentina . Armenia . Aruba . Australia . Austria . Azerbaijan . Bahamas . Bahrain . Bangladesh . Barbados . Belarus . Belgium . Belize . Benin . Bermuda . Bhutan . Bolivia . Bosnia-Herzegovina . Botswana . Brazil . British Virgin Islands . Brunei Darrusalam. Bulgaria . Burkina Faso . Burundi . Cambodia . Cameroon . Cape Verde . Cayman Islands . Central African Republic . Chad . Chile . China . Colombia . Comoros . Congo . Congo (Dem. Rep.) . Cook Islands . Costa Rica . Côte d'Ivoire . Croatia . Cuba . Cyprus . Czech Republic . Denmark . Djibouti . Dominica . Dominican Republic . East Timor . Ecuador . Egypt . El Salvador . Equatorial Guinea . Eritrea . Estonia . Ethiopia . Falkland Islands and Dependencies . Faroe Islands . Fiji . Finland . France . French Guiana . French Polynesia . Gabon . Gambia . Georgia . Germany . Ghana . Gibraltar . Greece . Greenland . Grenada . Guadeloupe . Guam . Guatemala . Guinea . Guinea Bissau . Guyana . Haiti . Honduras . Hong Kong . Hungary . Iceland . India . Indonesia . Iran . Iraq . Ireland . Isle Of Man . Israel . Italy . Ivory Coast . Jamaica . Japan . Jordan . Kazakhstan . Kenya . Kiribati . Korea (North) . Korea (South) . Kuwait . Kyrgyzstan . Laos . Latvia . Lebanon . Lesotho . Liberia . Libya . Liechtenstein . Lithuania . Luxembourg . Macau . Macedonia . Madagascar . Malawi . Malaysia . Maldives . Mali . Malta . Marshall Islands . Martinique . Mauritania . Mauritius . Mexico . Micronesia (Federated States) . Moldova . Monaco . Mongolia . Morocco . Mozambique . Myanmar (Burma) . Namibia . Nauru . Nepal . Netherlands . Netherlands Antilles . New Caledonia . New Zealand . Nicaragua . Niger . Nigeria . Niue . Norfolk Island . Northern Mariana Islands . Norway . Oman . Pakistan . Palau . Palestine . Panama . Papua New Guinea . Paraguay . Peru . Philippines . Poland . Portugal . Puerto Rico . Qatar . Reunion . Romania . Russia . Rwanda . Sahara . Saint Helena . Saint Kitts and Nevis . Saint Lucia . Saint Pierre & Miquelon . Saint Vincent & The Grenadines . Samoa . San Marino . São Tomé & Príncipe . Saudi Arabia . Senegal . Serbia . Seychelles . Sierra Leone . Singapore . Slovakia . Slovenia . Solomon Islands . Somalia . South Africa . Spain . Sri Lanka . Sudan . Suriname . Swaziland . Sweden . Switzerland . Syria . Taiwan . Tajikistan . Tanzania . Thailand . Togo . Tongo . Trinidad & Tobago . Tunisia . Turkey . Turkmenistan . Tuvalu . Uganda . Ukraine . United Arab Emirates . Uruguay . Uzbekistan . Vanuatu . Vatican City (Holy See) . Venezuela . Vietnam . Yemen . Zaire . Zambia . Zimbabwe

Template Design by Larry Lim | Powered by Article Dashboard