Laura B. Historic Phoenix Homes Specialist. EEOC. Member NAR, PAR, AAR Historic Central Phoenix Homes - Phoenix Historic Homes - Arizona Laura B. Historic Phoenix Homes Specialist. EEOC. Member NAR, PAR, AAR

Historic Central Phoenix Homes
Phoenix Historical Home Districts | Laura B. | Historic Phoenix Homes Specialist
Phoenix Historic Homes  Scottsdale Historic Homes  Glendale Historic Homes  Tempe Historic Homes

Mortgage & Loans In Phoenix, AZ
  FREE FULL MLS Search for All Phoenix Metro Homes and Historic Phoenix Homes For Sale


FEATURED Historic Phoenix Properties

 


List of Foreclosed Properties For Sale

 
Home
 
Search ALL Homes For Sale In Historical Phoenix Homes Districts 
 
Lofts, Condos & High-Rise Homes For Sale In Downtown Phoenix
 
Scottsdale & Paradise Valley Luxury Homes For Sale
 
North Central Phoenix Homes For Sale
 
Biltmore Corridor Homes For Sale
 
Arcadia Properties For Sale
 
Downtown Phoenix Living
 
Phoenix, AZ Relocation Information
 
Buyers Services
 
Sellers Services
 
About Laura Boyajian & Company Profile
 
Mortgage & Loans Information and Articles
 
Resources, Links & Information
 
Contact Laura Boyajian
 
Historic Phoenix News & Articles
 
Historical Phoenix Blog
 
Historic Phoenix Pictures
 
Sitemap



How Mortgages Work: Introduction to 30-Year Loans vs. 15-Year Loans

There are as many types of mortgages to choose from as there are types of houses to buy. Here you'll learn the pros and cons of a 30-year fixed mortgage and pros and cons of a 15-year fixed mortgage.

Lenders offer several types of mortgages, but the most common are fixed-rate mortgages. These loans feature fixed rates and monthly payments, generally for 15-year and 30-year periods. They're popular because consumers balk at the thought of their house payment rising and falling with interest rates and whenever rates are low, fixed-rate mortgages are very affordable.

Fixed-rate loan borrowers face one major choice: 15 year or 30 year? For some, a 30-year loan makes more sense. For others, a 15-year one does. Here are some pros and cons of each.

30-Year Fixed Rate Advantages

a. Offers the chance to borrow money on a long-term basis without having to worry about the interest rates or payments changing.

b. Monthly payments are lower than those on 15-year loans because the interest is amortized over a longer period.

c. Lower monthly payments free up money that borrowers can pour into investments that yield more than their homes.

Higher interest bill increases the amount consumers can deduct at tax time, potentially reducing or eliminating their federal income tax liabilities.

30-Year Fixed Rate Disadvantages

a. Borrowers build equity at a very slow pace because payments during the first several years go largely toward interest rather than principal.

b. The overall interest bill is much higher because of the long amortization term.

c. The interest rates are higher than on 15-year loans.

15-Year Fixed Rate Advantages

a. Borrowers build equity much more quickly due to shorter amortization schedules.

b. Overall interest bills are dramatically lower than those on longer-term loans.

c. The interest rates are lower than 30-year loans.


15-Year Fixed Rate Disadvantages

a. Monthly payments can be significantly higher than those on 30-year loans.

b. Restricts home buyers to smaller house than they might be able to afford with longer-term loans.

Read Article: Adjustable-Rate Mortgages (ARMS)

Also read:

 

4 Critical Factors In Choosing A Phoenix Historic Homes Realtor
 

Adjustable-Rate Mortgages (ARMS)
 

10 Reasons Why You Should Move to Phoenix, Arizona

 

Also read "What You Can Expect From Laura B."


For More Articles, News & Stories, Go to My Historic Phoenix Blog


Top 10 things to know and to do when buying a home

Phoenix Historical Homes Districts

Search Historical Phoenix District Homes

Historic Phoenix Homes For Sale
Laura Boyajian
Mobile: 602.400.0008
HistoricCentralPhoenix@cox.net


Historic Central Phoenix Homes - Laura B. Historic Phoenix Homes Specialist

Historical Phoenix Homes For Sale Phoenix, AZ

Historic Phoenix Homes For Sale Homes For Sale In Phoenix, AZ Historical Districts Phoenix Historical Districts Historic Properties For Sale
Willo Historic District Homes For Sale Free MLS Historic Homes Search, Phoenix, AZ Downtown Historic Phoenix Homes For Sale Downtown Phoenix Homes For Sale
Downtown Phoenix Lofts & Condos For Sale Real Estate For Sale In Phoenix, AZ Historic Houses For Sale In Phoenix, AZ
Realtors© In Historic Phoenix Neighborhoods
Historic Houses For Sale In Phoenix Historic Phoenix Properties For Sale Phoenix Area Historic Houses For Sale Historic Real Estate For Sale In Phoenix, AZ
Buyers Services & Information Sellers Services & Information Historic Central Phoenix Sitemap Biltmore Corridor Homes and Condos For Sale
Historic Central Phoenix Homes For Sale