Between 15 years and a 30-year mortgage which is best when buying a home in Boca? The answer depends on many factors, such as your financial situation and how much you can afford. Be sure to take your time to find the best Boca Mortgage Companies when you think of applying for a mortgage. This article will discuss the benefits of each type of mortgage: 15 years vs. 30-year mortgages.
15 Year Mortgages
15-year Mortgages are loans you repay over 15 years. These mortgage rates tend to be lower than 30-year fixed-rate mortgages because the duration is shorter, and therefore, your monthly payments will not need to include as much principal repayment. This means less money out of pocket for interest in the long run.
15-year mortgages are a great choice if you want to pay off your home sooner and have a higher monthly payment. However, it is essential to note that you may be subject to prepayment penalties if you sell or refinance your home before the end of the 15-year term.
30 Year Mortgages Boca Raton FL
30-year mortgages are loans that you repay for 30 years. These home loans usually have a lower interest rate than 15-year mortgages, so your monthly payments will be lower. However, you will end up paying more in interest over the life of the loan because you are spreading the repayment out over a more extended period.
30-year mortgages are outstanding if you want to pay off less of your principal per month and keep a lower monthly payment. If you do not pay off the loan before the 30-year term is over, you will be subject to prepayment penalties (if there are any).
How Can I Pay My 30 Year Mortgage in 15 Years?
Here are some options that you can use to pay your 30 years mortgage in 15 years.
1. Increase Your Monthly Payment
Typically, increasing the monthly payment for your home loan will pay off the loan faster and save you money in interest. However, it might not be possible within your budget.
2. Make One Lump Sum Payment
You can make a one-time payment to the lender. This is also known as “balloon” payment, and it will pay off your loan faster, but you might need to pay additional fees along with this option.
3. Bi-Weekly Payments
This is another way to pay your loan in half the time. By paying every two weeks instead of monthly, you will be making 26 payments a year, equivalent to 13 monthly payments. This method can be done by setting up an automatic withdrawal from your bank account, and it does not require additional fees.
4. Refinance to a 15 Year Mortgage
This is the last option, and it will require you to have equity in your home. Refinancing means that you are replacing your current loan with a new one. This can be advantageous because interest rates might have lowered since you got your original mortgage, or you could extend the loan terms from 30 to 15 years, which will lower your monthly payment.
Conclusion
When deciding whether a 15 year or 30-year mortgage is best for you, there are many things to consider. Both have their benefits and drawbacks, so it is essential to weigh your options carefully before deciding. Remember, selecting a reputable Boca Raton Mortgage Company is the first step to acquiring excellent mortgage terms.
If you are considering buying a home in Boca Raton and perhaps not sure which mortgage is right for you, contact Ace Mortgage Loan Corp to help you make the best choice.