Oh! Good. I caught you before you bought a house not knowing this. There is a decision that most home buyers make that seems comfortable at the time but can really back them into a corner later and YOU need to know about it. What could it be?! Termites? Sewer lines? A big change coming to the city? Nope.
It is heartbreaking to speak to a homeowner who bought a few years ago, wants to sell but doesn’t have the equity to do it. Let me show you an example of how you can avoid this all-too-common problem. This works with any home price, and will only marginally change with interest rates.
Think about this: the average family moves somewhere between every 3 and 5 years! When you call us to show you what you’ll walk away from your (hypothetical) $200,000 home sale with you could either have $45,200 (15 year mortgage) or $10,800 (30 year mortgage) in your pocket as you leave. WOW! What a difference!
I can hear people asking: “But… but…. 15 year mortgages are more expensive!” Yes. They are more each month. But what’s more expensive? A few hundred a month or a $30,000 difference when you sell in a handful of years? If that means buying a less expensive house, fine! A house is a big financial move, and we encourage 15 year mortgages so that you can put yourself in a better position in the future. Now you know! If you have questions, let us put you in touch with one of our preferred lenders to answer your questions!