You might assume that a 15-year mortgage in Ann Arbor, Michigan is out of reach. That may be the case, but then again, it might not. You can reap a lot of benefits from this type of mortgage. You won’t pay nearly as much in interest as you would with a 30-year mortgage. Also, your equity will accumulate much faster, and you’ll make more money should you decide to sell the house. A Gem Home Loans expert is ready to spell out all of your alternatives and help you decide whether you’d be better off with a 15-year mortgage or some other option.
Gem Home Loans is different. We try to make a profit, of course, like all other businesses. But we’ll never do so if it hurts our customers. There are some mortgage companies that will try to force you into a preconceived box. If they want you to get a 15-year mortgage, they’ll do whatever they can to push it on you – regardless of whether or not it will be best for you and your family.
We don’t play those games. If we think you’ll be able to handle a 15-year program, we’ll tell you. If we think you’d be better off with another type of mortgage, we’ll tell you. We want you to be as comfortable – and confident – as possible in your final decision.
Every mortgage lending program has its benefits and drawbacks. Here’s a brief look at the advantages and disadvantages of a 15-year mortgage.
The Pros
If you went with a 30-year mortgage, you’d pay a lot more money in interest over the long term. A 15-year mortgage could save you tens of thousands of dollars. In addition, many banks view 15-year mortgages as being lower risk loans. If you can prove you have the ability to handle this type of mortgage, you might find it easier to get it than you think.
The Cons
There’s a lot of responsibility attached to a 15-year mortgage. You have to carefully consider whether you would be able to meet that responsibility. More than likely, you’d be paying, on average, about $650 more per month than you would with a 30-year loan. There’s also a chance you might have to choose a smaller home than you could get with a 30-year mortgage.
Of course, you’re not limited to just choosing between a 15- or 30-year mortgage. There are other options you might not have previously considered. If you have some issues regarding your credit, for example, you might find it difficult to get one of these conventional loans.
But that doesn’t mean you won’t be able to get a new home. The U.S. government offers FHA (Federal Housing Administration) and VA (Veterans Administration) loans for people with credit problems. They offer very good interest rates, and, in many cases, can help you purchase a home with little – or possibly even no – down payment.
We can work closely with you to explore all of these options and help you get the new home you want.
Please contact Gem Home Loans for more information on a 15-year mortgage in Ann Arbor, Michigan, or other options that might be a better choice. Call (248) 780-1030 or contact us online.
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