Discover peace of mind with the best possible fixed rate mortgage combo, one that offers affordability with the potential for fast payoff. You don't have to refinance to accomplish this. In fact, you can do this even if you currently have a 30 or 40 year fixed rate mortgage.
Hi, my name is Kate and I'm a retired mortgage broker.
For over 20 years, I helped thousands of people borrow millions of dollars.
I understood the inner working of loan programs and gave my clients these tips that you read at my website.
From time to time, I met borrowers who were overly optimistic about paying off their mortgage. They had the right idea, to be free of the home loan by retirement.
But they often boxed themselves into a corner with a 10 or 15 year term without realistically considering their budget. This led to another refinance (think closing costs and loss of equity) to get back to an affordable payment. To avoid this cycle, I began asking borrowers to consider a combo loan. Before I go any further, let's look at mortgage payments based on different terms.
Compare the following estimated monthly payments based on borrowing $200,000 at 6%.
To understand why the payments get more expensive as the payback period gets shorter, take a look at these principles.
Tip: If you want the lowest mortgage payment, ask your bank about a 40 year term.
Tip: If you want the mortgage paid off quickly, 15 year terms are an excellent option, as long as the payment is affordable.
OK, finally, here is my little secret to creating a combo loan and this is important. The loan you are working with cannot have any prepayment penalties.
Visit my Mortgage Payment Calculator and start combining the best of both worlds, the advantages of a 15 year fixed rate mortgage, rapid principal pay down, with the safety net of the 40 year fixed rate mortgage, lower monthly payments.
Tip: Remember to add 1/12 of the annual insurance premium and property taxes to your payment.
For more help on budgeting mortgage payments, click here for How Much House Can I Afford?
Remember Forrest Gump? While they polished their boots together, his friend Bubba described the many ways his mama cooked shrimp. Quoting from the movie Forrest Gump...
There's pineapple shrimp, lemon shrimp, coconut shrimp, pepper shrimp, shrimp soup, shrimp stew, shrimp salad, shrimp and potatoes, shrimp burger, shrimp sandwich...
Just like Bubba's shrimp, the best fixed rate mortgage comes in different flavors... the 30 year fixed rate mortgage, 40 year fixed rate mortgage, a 25 year fixed rate mortgage, 20 year fixed rate mortgage, and the popular 15 year fixed rate mortgage.
Adjustable mortgage rates if carefully researched and understood can be appropriate under certain circumstances, depending on your goals.
Residential construction loans are home mortgages designed for building a house. They come with long term and permanent financing options.
January 2016: The Mortgage Forgiveness Debt Relief Act Update.
September 2015: Fannie Mae and Freddie Mac Improve Loan Modifications.
Keep on the right path at A Homeowner's Survival Guide to the Intimidating Mortgage Process.
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