Wednesday, January 9, 2019

Is a 15-year or 20-year Mortgage the Right Choice for Your Boston Home?


Many of today's Boston home-borrowers are attracted to shorter mortgage terms and lower interest rates. This is especially attractive if you have retirement on the horizon in the next 20 or so years. But, is this option right for financing your Boston home?

Can you afford to pay off the mortgage in 15-20 years?
If you can afford the higher payments associated with the shorter-term mortgage, why not take one? The rate is lower compared to a 30-year which means less interest AND paying that interest in half as long. But, that 15-20-year mortgage comes with a higher total monthly payment and this can cramp your ability to set aside money for retirement, investments, or other necessities. You don't want to max out on house payments and not be able to have emergency or fun money either. If this is the case than a 15-20-year mortgage is not for you.

Are you looking to refinance?
Depending on how high your current 30-year rate is on your Boston home you may be able to refinance into a 15 or 20-year mortgage and keep your payments the same PLUS shorten your mortgage term. It may mean a significantly lower interest rate, possibly as much as a full point.

Are you a first-time homebuyer?
A 30-year rate may be a better choice for you because it comes with lower monthly payments. If you are first time home-buyer in Boston trying to buy the most house you can, this lower payment will be an attractive option.

There are several choices out there regarding mortgage terms, I'd be happy to help and point you to a qualified professional who can discuss your personal circumstances and which options would be best for you.

And if you are still searching for that perfect Boston Home, let a local expert help you out. Buying a home is an exciting and complex adventure. It can also be a very time-consuming and costly one if you're not familiar with all aspects of the process. Taking the time to learn about the process and your options is critical to making the best-informed choices in order to achieve your own particular goals.

Please feel free to contact me, I look forward to hearing from you soon!



Lucas Garofalo
Keller Williams Realty
(617) 861-3631
Lucas@LucasBostonHomes.com

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