Gay Real Estate and the 15 Year Mortgage

Although 30-year fixed rate mortgages were the standard choice in the past, today lenders offer loans of varying lengths. Fixed rate mortgages are home loans where the interest rate remains the same throughout the life of the loan. Following are some advantages and disadvantages related to gay real estate and the 15 year fixed rate mortgage.

Benefits

images1. You will save money by paying less interest over the life of the loan. For example, a $100,000 loan at 8 percent interest for 30 years with a monthly payment of $734 adds up to $264,240, while a 15 year loan on those same terms results in a monthly payment of $956 and adds up to $172,080. The 15 year loan results in a savings of $92,160.

2. You may save money in interest. Many lenders charge lower interest rates on a 15 year loan than for longer term loans. For example, on the 30 year loan referenced above.

3. Your equity in the home builds up much faster than with a longer term loan. Equity is the difference between your home’s value and the amount that is owed on the mortgage. For example, if your home is valued at $150,000 and you owe $100,000 on your mortgage, your equity is $50,000.

4. You will own your home free and clear in a much shorter time. This may be very beneficial if you plan to retire in 15 or 20 years and do not want to worry about making a mortgage payment.

Disadvantages

1. Your monthly payment will be higher than for a longer term loan.

2. Since the amount of interest you pay over the life of a 15 year loan will more than likely be less than it would be for a longer term loan, you will have less of a mortgage interest tax deduction every year.

3. The higher monthly payments could be a disadvantage if one of you suffers a loss of income or unexpected expenses.

There are other aspects to obtaining mortgage loans that could save you money including mortgage discount points. These points can be purchased and paid for at closing. In return, you will pay a lower interest rate on your mortgage. The amount varies depending on the lender.

If you are considering a 15 year mortgage, you should consult with your lender to find out your options. The Federal government and each state have enacted laws that apply to mortgage loans. It would be wise to consult with a local LGBT friendly realtor or attorney to review your mortgage loan agreement before signing on the dotted line. Any of the gay realtors at GayRealEstate.com can assist you in referring you to lenders who are gay/gay friendly, and may give you the best options. We hope that this article has helped you understand a little about the 15 year mortgage.

Author: admin

In the mid 1990’s Jeff Hammerberg a Gay REALTOR working at a successful ReMax Office in Colorado witnessed discrimination first hand and has spent his career changing the way the Gay & Lesbian Community buys or sells a home. “My goal is to make sure when you walk in to or call a real estate office, you have an appointment with a top producing agent that you know stands in full support of you as a gay or lesbian person and works with you as your advocate throughout any transaction. Let’s make sure the commissions earned by an agent you employ, are not being used to fund positions or causes that don’t stand in full support of the LGBT Community. Many of our Gay & Lesbian REALTORS are Top Producers in their communities, offering unparalleled service today and in the future. There is no cost or obligation to use any of our services or directories.”