The Way You Pay Depends on How Long You Plan to Stay, Mortgage Refinance : iPedia

Are you needlessly spending hundreds of dollars more than you need to each month for your

A mortgage is a method of using property as security for the payment of a debt.

The term mortgage (from Law French, lit. dead pledge) refers to the legal device used in securing the property, but it is also commonly used to refer to the debt secured by the mortgage.

In most jurisdictions mortgages are strongly associated with loans secured on real estate rather than other property (such as ships) and in some cases only land may be mortgaged. Arranging a mortgage is seen as the standard method by which individuals or businesses can purchase residential or commercial real estate
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If you’re like most people, you've probably been bombarded with advice by well-intentioned, although clearly ill informed people, that a 30-year fixed mortgage loan type is the only loan to consider. To dispel a long-standing untruth, a 30-year mortgage is not necessarily the best alternative for a mortgage.

Why? The fact is that 96.5% of homeowners sell and move, or refinance, within 7 years of taking out a loan. So why force a lender to commit to providing a 30-year fixed rate mortgage when you could 'buy' a 7-year interest rate commitment at a lower interest rate?

The latest trend of 40-year loans might fit you even better. Or perhaps an adjustable rate mortgage with a 5- or 7-year fixed interest rate. Either way it translates into lower monthly payments for you. True, borrowing the money over a 40-year period or with an adjustable rate could result in you paying a heap more of interest if you keep the loan for more than a few years, but if you move out or refinance during the first few years, as many people do, then you’ll be coming out way ahead, financially.

So think twice before going ahead with that 30-year mortgage. It can cost you much more than other loan options.

Anthony Ferlazzo makes it easy to obtain a mortgage. He's available to help you with your mortgage. For details and to get going with a mortgage, visit this site now: http://www.lightning-mortgage.com

A loan is a type of debt. All material things can be lent but this article focuses exclusively on monetary loans. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower. The borrower initially receives an amount of money from the lender, which they pay back, usually but not always in regular installments, to the lender. This service is generally provided at a cost, referred to as interest on the debt.
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The Way You Pay Depends on How Long You Plan to Stay

Are you needlessly spending hundreds of dollars more than you need to each month for your mortgage because you have the wrong loan type for your circumstances? Understand your options, and their costs. Don't make a 30-year mistake by making assumptions.

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