Shorter LoansAccording to an article on msn.com, more homeowners are deciding to pay their mortgages faster, even if it means a substantial increase in their monthly payments.
From January 2010 to June 2010, 26% of homeowners who refinanced chose a 15-year fixed-rate mortgage the Maryland movers found out. This is according to CoreLogic. In 2009, 18.5% of people borrowing money chose that same 15 year term.
Homeowners are realizing that rates are low enough that they can pay a 15 year mortgage. For example, the average rate on that type of loan was 3.62% for the week ending in October 14.2010. People these days rather pay off their debt sooner, working harder to do so. The low interest rate is also very attractive to homeowners.
Not everyone can afford to pick a shorter home loan, because even though the interest rate is low, the mortgage payment will still be higher than with a longer loan term. msn.com gave an example by comparing to loans. According to the article, with a 4.5% interest rate on a 30 year fixed mortgage of $200,000, the monthly payment will be $1,015. On a 15 year loan, the mortgage would increase to $1,480.
Those choosing the shorter home loans typically are older and have less debt All My Sons of Maryland learnt. They generally have higher incomes as well and plan on staying in their homes a little longer.
If you’ve signed up for a 15-year loan and are ready to move in somewhere in Maryland or in nearby neighborhoods, get a free moving quote from your friendly movers at All My Sons of Maryland. We’re backed by four generations of movers and have plenty of experience in moving of all types including commercial moving and residential moves of course. We can even help you find sturdy moving boxes, moving kits as well as specialized wardrobe boxes to make moving your clothes simple. No need to pack it all in, just transfer the clothing as is. All My Sons of Maryland is part of a huge moving network with moving company offices in various locations in the U.S. even in Mexico. All My Sons Moving also provides storage for people who are in transition and waiting to move into their new place. So if the home you purchased isn’t available immediately, rest assured that we can hold on to your personal belongings safely and deliver your goods when the time comes.