countrywide 40 year mortgage

" There are few things in this life, that same feeling, that paid. " "- Kin Hubbard, Abe Martin's Sayings Back Country, 1917

Pay off a mortgage early? I will never forget my disbelief when we bought our first house. Remember year our loan would pay off, I asked my husband, "" Honey, look how old we are, if we take our last mortgage payment? "" Do not worry, "" The Loan Officer interjected, "It is a loan amortization. "" I think he wanted me back better.

Years later, I have the mortgage lending industry, and finally my own mortgage company. My customers were amused as I tell my own first impression of mortgages and amortization. I have it as my favorite oxymoron, since the act of removing a mortgage by a gradual depreciation is most homeowners rarely become mortgage free.

Both mortgage and depreciation from the Latin root "mort", meaning death. In summary, for which I explain to my customers, "" until death do we part. "" Or more to the point, until death, we do. "

A simple definition of the mortgage is to borrow money to own property. In contrast, amortization is the reduction of debt by the proposed rates, starting with more interest than principal in the earlier years. If a homeowner realized how long it takes to fully pay back, have a home free of mortgage and amortization to a contradiction in terms at best, an oxymoron.

For those of us who prefer to dream of a mortgage-free before we die, what measures can we take to pay off the mortgage? Consider this. After the first 15 years of payments on a $ 200,000 loan with a 30-year fixed mortgage at 6%, a borrower will still owe $ 142,097 of principal. In fact, after a full 30 years, a homeowner would pay a total of $ 431,671 in mortgage payments, including principal and interest. There must be a better way to be mortgage free!

Do not give up! I have a solution! Do you have a 15-year fixed mortgage? It is a great way to mortgage write-offs actually work in your favor.

You will usually find the 15-year interest rate a little lower than its counterpart, the joint 30-year mortgage. The lower rates save you thousands of dollars in interest on the mortgage term. And after 180 payments, you can create your own home without mortgage remaining!

Here is a good example. Let's say you borrow $ 200,000 with a 15-year fixed mortgages. Speed up the clock another 15 years. You have paid your mortgage. Are you up for a 30-year mortgage, you still owe $ 142,097 of principal and an additional $ 74,000 in interest over the next 15 years.

A 30 years fixed rate would cost about $ 232,000 in interest alone. You save almost $ 138,000 in interest with a 15-year amortization and mortgage-free much sooner.

Sure, your mortgage payments is higher with a 15-year fixed mortgage but you pay it in half the time compared to a 30-year tenure.

Now, there is no contradiction!

The calculations in this article are estimates. Consult a lender for the exact numbers and results. The interest rates vary and could observe a different result.

Kate Ford, a mortgage insider with more than 20 years experience, has Get-Your-Best-Mortgage-Rate.com with a unique touch. Your website on http://www.get-your-best-mortgage-rate.com is for homeowners to help translate the secret language of mortgage lending value to find the best mortgage at the lowest cost.