Many mortgage companies in Bloomfield Hills, Michigan will, unfortunately, try to push a specific type of loan on you. They might need to make a quota, or there might be some other reason. Gem Home Loans experts never do that. We make sure all our clients receive the type of loan that best fits their needs and their budget. We’ll spell out the pros and cons of different programs to make sure you have the most complete information to make the right choice.
This is just one example of how we make sure our clients know all of their options. You might have run into a mortgage company that really tried to talk you into taking one or the other, but we don’t work that way. We know there are advantages and disadvantages to all kinds of mortgage loan arrangements.
Let’s take a look at how 15- and 30-year mortgages stack up against each other.
If you have the financial means, you should seriously consider this type of mortgage. Not only will you pay it off twice as fast as you would with a 30-year loan, you’ll also save a substantial amount of money on interest – in many cases, it can add up to tens of thousands of dollars. Once your mortgage is paid, you can focus on saving money for retirement, or taking a trip you’ve been dreaming of for years.
A 15-year mortgage obviously isn’t for everyone, however. You’ll be making a much higher monthly payment than you would for a 30-year mortgage, and that could really limit your budget. If you have any reason to believe your financial situation might not be as good over the long term, you should definitely not go this route. The reason is that once you sign your papers and commit to that term, you’ll be obligated to make those higher payments.
This is the most popular type of mortgage, because it gives borrowers a lot more “breathing room,” so to speak. Monthly payments are a lot lower, so you have more flexibility should your finances unexpectedly take a turn for the worse. It gives you a little more peace of mind that you won’t have to worry about losing your home should things all of a sudden go sour.
Also, by keeping extra money in your pocket each month, you’ll have an easier time building up your savings. That will help you pay off debt faster, or make improvements to your home. If you want, you could even pay a little more each month to help pay down your balance faster. Then, if your situation warrants, you could go back to your original payment amount.
The downside, though, is the amount of interest you’ll be paying – and it can be a really large number. Homeowners who can handle a 15-year mortgage will wind up with a lot more money in their pockets.
We stand apart from other mortgage companies in Bloomfield Hills, Michigan in that we take the time to help our clients make major decisions, such as choosing between 15-year and 30-year mortgages. Let us do the same for you. Call Gem Home Loans at (248) 780-1030 or contact us online.