What would you do with an extra $87,789? Meet the 20 year fixed rate mortgage. The 20 year mortgage builds equity faster while the homeowner pays less interest to the bank.
It's a great way to pay off a mortgage early and save 10 years of interest compared to a 30 year fixed rate mortgage.
In fact, it feels like a customized mortgage, created with yourindividualized plans in mind.
How much money will you save by shaving off 10 years from your mortgage term?
Example:Suppose you borrowed $200,000 at 6 percent for 30 years. $231,676 is the amount of interest you will owe the bank to pay off the mortgage.
Now take the same $200,000 at 6 percent but substitute 20 years for the length of the mortgage term. The interest paid over 20 years is $143,887, a difference of $87,789.
Think for a moment what would it mean to your future if you could deposit $87,789 into your bank account instead of paying it to the mortgage company.
Visit the Easy Home Mortgage Payment Calculator page to put these numbers into action for you.
Follow the steps to calculate a 20 year fixed rate mortgage payment using the amount you currently owe on your home loan. You can compare the 20 year payment to your current payment too.
View and print the personalized amortization schedule to help decide if this is a good fit for you.
If you want to build equity faster while paying less interest, the 20 year fixed rate mortgage may be the right home loan for you.
The best fixed rate mortgage for you depends on your time line.
If meeting your goals requires you to pay off your mortgage early, there's no need to feel boxed in to a traditionally longer term. Ask your lender for a 20 year fixed rate mortgage.
Haven't found what you're looking for? Here's the solution! Go ahead and Ask Kate for answers.
Now go to Best Fixed Rate Mortgage where you get to have your cake and eat it too!
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