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15-Year Loan Pros & Cons
Question: What are the pros and cons of 15-year loans?
Answer: A 15-year mortgage will have a somewhat lower interest rate than a 30-year loan and WILL substantially reduce your overall interest cost. The catch is that monthly payments are higher, and not everyone can qualify. The second catch is that high monthly payments can be a big problem if you lose your job or run into financial difficulties. An alternative works like this: get a 30-year loan where you have the right to prepay in whole or in part at any time and without penalty. Then make additional prepayments so that you wind up with a 15-year loan. A 30-year loan should be easier to get.
Written by Peter G. Miller.
© 1997 Peter G. Miller. All Rights Reserved. Rules, Disclaimers & Notices.
Copyright © 2012 Realty Times. All Rights Reserved.
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