Are you thinking about selling your home? Has someone approached you about seller financing the home? Is this an option that you need to know more about? Working with a real estate agent can help you avoid costly mistakes when selling your home. He or she can help you learn about seller financing and determine if it would be a good option for you to consider. My real estate agent helped me sell my home to a wonderful family that didn't have credit that was established enough to take out a traditional mortgage. Visit my site to find out what we looked for to determine if this was a wise decision for us to make.
If you need to cut back on how much you are paying for your home's mortgage each month, refinancing can be a great way to do it. When interest rates fall, you can get a new loan to use the lower interest rate instead of your current one. The big decision you'll need to make when refinancing is the length of your mortgage. With terms ranging from 10 to 30 years, you must consider the following things when making a decision.
Your Goals of Refinancing
Take a step back and ask yourself what your goal of refinancing will be. Are you looking to pay off your mortgage faster, to decrease the amount you pay each month, or to get that low interest rate with the intentions to sell soon after?
After determining why you are refinancing, use that to drive your decision about the loan term length. For those that are having difficulty making mortgage payments, a 30 year loan will give you financial relief now, though you'll be spending more over time. If you are looking to pay off your home quickly, you may decide to refinance as a 10 year mortgage to get it paid off faster.
Also, look at how many years you have been paying into your current home mortgage. If you want to stay on that track to pay off the home in 30 years, pick a term length that is close to how many years you have remaining.
The Time That You'll Live in the House
Do you plan to move to a different home in a couple more years, or is your home potentially the home you'll stay in forever? If there are not that many years left in your home, a shorter term mortgage will help build equity. For a home that you'll stay in forever, a longer term will help spread out those payments over time.
Your Future Income
While your income may be great now, will there be a change in the future? For example, is your spouse planning to leave their job to stay home with your child, or is a spouse retiring in the near future? If your household income will be decreasing soon, select a longer term. This will lower your monthly payments to help compensate for the reduced household income.
For more tips on what home loan term length to pick, speak with your mortgage broker.
Share