15-Year vs. 30-Year Mortgage – Comparison, Pros & Cons
There is no shortage of decisions to be made when applying for a new mortgage loan. You have to select a lender and decide between a fixed or an adjustable rate – and then you must make the biggest decision of all.
Paying on a mortgage loan for 30 years is typical, and in fact, many homebuyers assume they need to accept a 30-year mortgage term. However, this standard mortgage length is not written in stone, and you can choose to pay off your mortgage sooner with a 15-year loan.
 
 
15 Year Fixed Mortgage Help

What is a 15-year fixed mortgage?
A 15-year fixed mortgage is a loan whose interest rate stays the same for the duration of the loan. For example, on a 15-year mortgage of $300,000 with an interest rate of 5.75%, the monthly payments would be about $3,097.90. So, the interest rate of 5.75% stays the same for the life of the loan.
 
Fringe 15-year mortgage becomes hot property
The 15-year loan, long considered a fringe character in the mortgage scene, is riding a wave of popularity.
Thanks to low interest rates, many borrowers are opting for the deal that allows them to pay off their mortgages in half as much time as the traditional 30-year mortgage.
Nearly 16% of the fixed-rate mortgages that lenders sold to Freddie Mac during the third quarter were 15-year loans, up from almost 10% a year prior, according to the agency’s data. (That data doesn’t include refinancings.) And 15-year mortgages accounted for nearly a third of refinanced loans during the first seven months of this year, according to the latest data by CoreLogic . The figure has been climbing since 2007, when they made up just 8.5% of refinancings.
 
 

 

NEW YORK (CNNMoney) -- Mortgage rates continued to plunge to new lows this week, with interest rates on the 15-year fixed rate mortgage dipping below 3% for the first time on record.

The 30-year fixed mortgage, the most popular mortgage product, fell by 0.03 percentage points to 3.75%, setting yet another record for the fifth week in a row, according to a weekly survey by Freddie Mac. Last year, 30-year loans averaged 4.55%. The new low can save borrowers about $47 a month for every $100,000 borrowed. Over a 30-year term, that comes to $16,756.

Home building at 4-year high

 

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Mortgage rates keep plunging: 15-year dips below 3%

NEW YORK (CNNMoney) -- Mortgage rates continued to plunge to new lows this week, with interest rates on the 15-year fixed rate mortgage dipping below 3% for the first time on record.

What are the taxes of helping my kids build a home?


Posted on November 20, 2012
Our daughter is building a new home with an in-law suite for us. I am 72 and my wife is 68. We plan to sell our present home and contribute $300,000 of the proceeds to live in this in-law suite. Is there a tax liability for our daughter or us? Also, since we plan to live out our lives in this arrangement, would this contribution be an estate asset for our beneficiaries? — Charlie H.

Current Mortgage Rates Today

October 18, 2012 - 2:58am.
15-Year FRM Graph

(Best Syndication News) Mortgage interest rates increased today as lenders made adjustments following an upswing in some of the benchmarks (see the mortgage rate charts below). Bank of America, Wells Fargo, and Citibank raised their loan products as secondary lenders reacted to the shift in capital markets.
Benchmarks

 

By Associated Press, Published: September 20

WASHINGTON — the average U.S. rate on the 30-year fixed mortgage touched its record low this week and the rate on 15-year mortgage hit a new record.

The declines followed the Federal Reserve announcement last week that it would buy bonds to try to push mortgage rates lower and stimulate the housing market.

By Max Thompson
September 24th, 2012

Homebuyer affordability high right now

Mortgage rates are back at or near historical lows yet again after weekly declines, Freddie Mac said in its most recent weekly mortgage report.

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