30 or 40 year mortgage

The traditional 30 years fixed rate mortgage is still the most popular mortgage option, because it allows building owners to provide for greater amounts. When mortgage refinancing, a mortgage in 30 years is not always useful and often leads to overpaying. Here are some tips to help you select the option that mortgage refinancing is right for your financial situation.

If you compare the interest rates on a 30-year loan compared to a 15-year mortgage, you pay a higher amount with the amazingly long length. The choice of a 15-year loan when mortgage refinancing, will also reduce your interest rate everywhere, 375 -, 6 percent. Here is an example of the difference in financing costs.

Suppose you apply for mortgage refinancing with a fixed $ 200,000 loan. With 15 years for 5.9% interest. The same loan at 30 years would be a 6.5% mortgage rate. The additional 15 years on the mortgage payment results in a full $ 153,252 additional funding costs than if you had opted for a 15-year-old mortgage loan!

15 years mortgage:

Loan Amount: $ 200,000

Mortgage Rate: 5.9%

Monthly payment: $ 1,676.92

Total interest paid: $ 101,846.91

30 years mortgage:

Loan Amount: $ 200,000

Mortgage Rate: 6.5%

Monthly payment: $ 1,264.13

Total interest paid: $ 255,088.92

Your monthly mortgage payment could be $ 412 per month for a 30-year mortgage loan, but is it really worth the extra $ 153,252? Mortgage refinance with a 15 years is becoming increasingly popular with homeowners who do their homework, and run the numbers.

You can learn more about your mortgage refinancing options, including costly mistakes to avoid by registering for a free mortgage tutorial.

To get your free six sub mortgage refinancing video tutorial, visit RefiAdvisor.com with the link below.

Louie Latour specializes in homeowners how to avoid costly mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing - What You Need To Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.

Claim your free mortgage refinancing guide today at: http://www.refiadvisor.com

Mortgage Refinancing Information