Prospective homeowners often stress about things like 30 year home loans in Michigan. They really have no idea whether this or another type of loan is truly the smartest option. At Gem Home Loans, we can take away that stress. We’ll learn everything we can about your financial situation. Then, we’ll carefully explain all of the choices that make the most sense. Once that happens, you’ll have peace of mind knowing you’ll be pursuing the very best loan possible.

Changing from a 30- to a 15-Year Mortgage

30 Year Home Loans MichiganYou might have obtained your original mortgage a while ago, and it’s for 30 years. But things might have changed since then. You could have gotten a new job and you’re making a lot more money. Or you don’t have as many expenses as before, because you’re kids are out of the house and they’ve started their careers. There could be one of a number of reasons that you’re a lot better off than when you first moved into your home.

So now that you have a bigger bank account, you might be wondering if you should change your mortgage from a 30-year to a 15-year program. You know you’ll save thousands of dollars doing so, because you won’t pay nearly as much interest. You also feel pretty confident that you’d be able to handle a larger mortgage payment each month.

If this applies to you, then it’s worth exploring whether or not this will be a good idea. It’s really important, however, that you get the whole picture. This is an incredibly big commitment. Here are a few of the more important considerations you’ll want to take into account.

  • First off, your monthly payment isn’t just going to go up a little bit. It’s going to go up a lot. You have to take a long, hard look at your finances and make 100 percent certain you’ll have enough of a financial cushion – and that cushion will last for the lifetime of the mortgage. If you have any doubts whatsoever, then it will probably better in the long run to stay with what you have.
  • You might find that you can swing the higher payment, but that might affect your ability to pay off other debts, such as your car loan or your credit cards. It might be a good idea to go ahead and pay those off first before taking on a shorter-term mortgage.
  • It might actually be smarter to take that extra money you’d be paying on your mortgage and invest it in other areas. That could actually bring a larger return than pouring more money into your house.

We’re not trying to dissuade you from changing to a 15-year mortgage at all. We just want you to have all of your bases covered before you make this plunge. There’s also something else to keep in mind. You could pay more each month on your current mortgage, and still pay it off faster. That way, if your finances should change, you’ll still be able to fall back on making your original payment.

Let Us Help You Make the Right Decision

The experts with Gem Home Loans have a lot of experience helping people decide whether or not to switch from 30 year home loans in Michigan to 15 year mortgages. We can do the same for you. Please call (248) 780-1030 or contact us online.