How Many Years Do You Want Your Mortgage To Be?
Did you know mortgages do not necessarily come in the standard 10, 15, 20 and 30 year terms anymore? As business evolves so don’t the products and the way they’re structured. It used to be you could apply for a 20 year mortgage if you didn’t want the higher payment of a 15 year, and the total interest you would pay on a 30 year mortgage. But now the option is in your hands with the availability of the “flex term mortgage”. It’s common knowledge the longer you pay on a loan the more interest you pay, and it’s also common knowledge that a shorter mortgage is more expensive per month. Some people would like to have the benefit of not paying as much in interest and not having the higher payment a shorter term mortgage presents.
We have a unique way of cutting that number down by providing you with a customized mortgage term that will lower the interest you pay and adjust the monthly payment to a point you find manageable. Not many lenders off this unique term option and it’s been very popular.
What Are The Rates On A Flex Term Mortgage?
You can read about How your mortgage rate is decided here, and it will explain how interest rates are calculated based on your loan type and credit score. What it doesn’t mention is how the interest rate works on these flex term mortgages. Typically your rate will be the same if you are doing a 20-30 year mortgage, you will not see any reduction in rate until you are working with a 15 year and under mortgage. The pricing is slightly better as you reduce the term of your mortgage, but the real advantage (if you can manage the payment) comes into play when you apply for a Apply for a 15 year mortgage.
Keep in mind, a flex term isn’t the only way you can pay your mortgage of quicker, you can always add additional money to your monthly payment to reduce the amount of interest and pay off the mortgage quicker. We have an excellent Mortgage calculator here if you want to do some number crunching on your own.
If any of this piques your curiosity and you want to know more, please Ask me here, or you can contact me directly with the contact information below. Thank you!
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Justin Scott
Loan Officer
NMLS 878581
- C) 920-530-4484
- O) 920-490-8823
- F) 920-490-8967
Executive Mortgage
NMLS 271650
909 . E Walnut Street
Green Bay WI 54301