The 30-year mortgage is currently the preferred type of home loan for the vast majority of buyers across the nation. In fact, nearly 95% of EveryHome’s borrowing clients obtain a 30-year loan. However, some financial advisors warn that 30-year loans aren’t in every buyer’s best interest, as they can lead to high levels of debt into the years of retirement.
In a recent article published by Forbes, respected industry financial expert Edward Pinto called for the discontinuation of the 30-year loan and stated that it “fails to build up wealth” and “mortgage debt should not be a burden as homeowners approach their 50s and 60s.”
Instead, the 15 year home loan may be a wiser alternative. Of course, monthly payments are considerably higher on a 15 year home loan, which repels many buyers. However, the amount of interest shrinks considerably (interest rates are well under 3%!) and buyers will enjoy free-and-clear ownership in half of the time.
To determine if a 15-year loan is right for you and your family, be sure to check out EveryHome’s Closing Cost Calculator and adjust the loan length to 15 years. For more individualized assistance, be sure to speak to your EveryHome agent and trusted lender.