Benefits Of A 10 Year Mortgage [mortgageloan-processor.blogspot.com]
Success.org Real Estate Millionaire Tip Hi, I'm Martial Arts Master Bill FitzPatrick And this is real estate millionaire tip #6 Let's quickly review More money has been made in real estate and more people have become millionaires from real estate than any other way In ALL countries for ALL times in history, it has been -- IT IS and it ALWAYS will be the RICH people who own the real estate. Here is the real estate business You borrow money to buy property-- and you have these wonderful people called TENANTS who pay the money back for you You buy a property with a 20 year mortgage -- your tenants pay you rent for 20 years helping pay your mortgage -- then in 20 years when you have paid off your mortgage -- your WONDERFUL tenants KEEP paying you rent -- your tenants children and grandchildren keep paying your children and grandchildren rent You know like in the fairy tail -- 'They lived happily ever -- forever - after" Th anks to your work -- this will be your family forever and EVER This is how rich people -- rich families - get rich And, remember It has been -- it is -- and it always will be -- in every country on earth -- the rich people who own the real estate Again, how do rich people get rich? Don't whine and complain -- Don't be envious of them Make the choice to become rich yourself Commit to working 50 hours a week -- 40 hours to pay your living expenses 10 hours to save to buy your real estate You want to acquire 6 solid properties to hold With six solid income ...
mortgageloan-processor.blogspot.com Real Estate Millionaire Tip #6
Mortgage rates have been dropping because they tend to track the yield on the 10-year Treasury note. A weaker U.S. economy and uncertainty about how Europe will resolve its debt crisis have led investors to buy more Treasury securities, which are ... 30-Year Mortgage Rate Falls To Record 3.56 Percent
Benefits of a 10 Year Mortgage
With mortgage interest rates near historic lows, now might be the right time to consider refinancing down to a ten year fixed rate mortgage. 10 year fixed rate mortgages are amortized over a 120 month period allowing borrowers the ability to pay off their mortgages in a fraction of the time of other fixed rate products. 10 year mortgage rates tend to be in line with or slightly lower than 15 year fixed mortgage rates. The biggest hurdle with 10 year mortgages is that the repayment period is so short making monthly mortgage payments considerably higher than 30 year and 20 year fixed rate home loans.
In today's rate environment, homeowners who once where unable to afford 10 year mortgage payments may be able to handle the higher payments. When you factor in how much interest is accrued over a thirty or twenty year span, 10 year mortgages start to look very appealing.
Let's look at some examples:
10 Year Fixed Rate Mortgage
$ 200,000 Loan Amount
Note Rate of 4.000%
Monthly Principal and Interest Payment: $ 2,024.90
Estimated Interest Paid Over 30 Years: $ 42,988.33
Interest Saved Vs. 30 Year Fixed Mortgage = $ 143,232.24
Interest Saved Vs. 20 Year Fixed Mortgage = $ 70,485.29
Interest Saved Vs. 15 Year Fixed Mortgage = $ 27,831.90
30 Year Fixed Rate Mortgage
$ 200,000 Loan Amount
Note Rate of 5.000%
Monthly Principal and Interest Payment: $ 1,073.64
Estimated Interest Paid Over 30 Years: $ 186,511.57
20 Year Fixed Rate Mortgage
$ 200,000 Loan Amount
Note Rate of 4.875%
Monthly Principal and Interest Payment: $ 1,306.14
Estimated Interest Paid Over 30 Years: $ 113,473.62
15 Year Fixed Rate Mortgage
$ 200,000 Loan Amount
Note Rate of 4.250%
Monthly Principal and Interest Payment: $ 1,504.56
Estimated Interest Paid Over 30 Years: $ 70,820.23
The examples above show the potential for interest savings over the life of the various loan programs when compared to a 10 year fixed rate mortgage. It also illustrates how much higher the monthly principal and interest payments are with each product. Rates and terms may vary by lender so be sure to speak with a licensed mortgage professional to verify the accuracy of the aforementioned example and to request current rate information. Another way to knock years of your mortgage and save interest is to make additional principal reduction payments periodically thus paying off your principal balance in a shorter window of time. Making an extra principal payment every year could knock years off the life of your mortgage. Borrowers do need to consider that some mortgages have prepayment penalties and that they should ask their mortgage professional if there are any prepayment penalties associated with their mortgage products before making a decision. Certain states do not allow p repayment penalties on first mortgage programs.
While a ten year mortgage may not be realistic for many homeowners, those who can qualify and afford the higher payments will likely see large savings in the long run. Contact your mortgage professional for a rate quote and debt-to-income analysis to see if a 10 year mortgage is the right fit for you.
More Benefits Of A 10 Year Mortgage Issues
