Cut 8 Years Off Your Mortgage in Sioux Falls

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Many buyers ask, “Should I do a 30-year mortgage or a 15-year mortgage?” There are ups and downs with each. Most people choose a 30-year mortgage because the monthly payments are lower, which gives you more flexibility on how much money you can spend.

The 15-year mortgage requires a higher payment, but you’re going to pay that loan off a lot sooner and get a lower interest rate. Still, a lot of people don’t like how high that monthly payment is and opt for the 30-year loan.

The good news is there is a way to turn your 30-year mortgage into a 22-year mortgage. All you have to do is make one extra payment per year on your mortgage. You can just make an extra payment, or you can add an extra 1/12th to each of your monthly payments, which can be less painful on a month-to-month basis.  

Either way, making that extra payment will save you eight years on your mortgage and tens of thousands of dollars in interest over the life of your loan.

If you have any questions, give me a call or send me an email. I would be happy to help you!