Many homeowners or home buyers obviously want to get out of mortgage debt as quickly as they can. Owning a home outright is going to be more beneficial, for many homeowners, since they can use the money they would be paying towards their mortgage for other expenses in life or to renovate their home so that they might be able to add to their property value.
However, many homeowners choose a 30-year fixed rate mortgage in order to get lower monthly mortgage payment on their home while. Yet, a 30-year mortgage can cost almost double the original amount of an individual’s home loan, which is something many homeowners want to avoid.
A homeowner that is able to afford a slightly higher monthly mortgage payment may benefit from a 15-year fixed-rate mortgage on their home loan. A 15-year fixed mortgage usually comes with a lower mortgage rate and will get a homeowner out of debt in a much shorter time than many other home loans. Also, with a 15-year fixed mortgage homeowners can get out of mortgage debt at less cost overall.
One drawback to this type of mortgage is the higher monthly mortgage payment that typically comes with this home loan. Again, homeowners that can afford a higher monthly mortgage payment may benefit in the long run from this type of mortgage but some homeowners choose an alternate option when it comes to getting out of mortgage debt quickly.
Some homeowners use a 30-year mortgage in order to keep their monthly mortgage payments low but they will pay much more than the minimum monthly requirement on their home loan so that they can get out of debt years ahead of schedule.
However, homeowners will need to make sure that no matter what option they choose it will be the best for them financially. Interest rates and monthly mortgage payments will be heavily dependent upon an individual homeowner’s credit score, home equity, and their financial situation. Also, some banks may charge fees for getting out of mortgage debt early so this is something that needs to be researched.
Yet, homeowners who qualify, may be able to get out of mortgage debt faster and at a much cheaper mortgage cost if they simply plan correctly, choose the right financial path, and stay within their budget.