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Secrets Your Mortgage Broker Will Not Tell You

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Shorter Loans Will Save You Money

Source: https://www.moneyunder30.com

This tip will help save money from buyers who use it. It makes sense that a 15 year loan instead of a 30 year loan will mean paying less interest, though higher monthly payments. If you can afford it, this would help you cut costs. For example, a 30 year loan of $300,000 with 4% interest will mean paying a total of a little over $515,000. The same loan for 15 years at 3.5% interest will mean a total payment of a little over $385,000. So you will have saved around $130,000, and you get to own your home earlier. Most buyers opt for the longer term loans due to affordability. But they fail to realize also that longer is riskier. Anything can happen given time. You could lose your job, a recession can occur, and you ever know when accidents and calamities will happen. Just keep this in mind.

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