(5) Build Equity With Larger Mortgage Payments
A 30-year fixed rate mortgage is standard practice for home buying. But just because everyone else is
doing it, doesn't make it the smartest route to take in purchasing real estate. Over 30 years, you'll pay a
lot more interest and build equity much slower. The ideal route for purchasing a new home is with a 15-
year fixed rate mortgage (unless you have cash, then forget financing!). If that isn't possible, making an
additional mortgage payment at least once a year can help to dramatically lower the interest you pay on
the overall loan.
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