what is a 40 year mortgage

what is a 40 year mortgage
You probably already know, for a lower rate than mortgage refinancing will save you money, but you know how much you save? You, even if only for one quarter point lower interest rate, you can still save boatload of cash for the entire term of your Mortgage. Here are some tips to help you understand the conditions for a better interest rate and illustrate the potential savings from mortgage refinancing.

One factor that affect your interest rate for mortgage refinancing is the term length you choose. Mortgage refinancing with a shorter term length you get a lower rate than a traditional 30-year mortgage. Loan with 15 years are a popular choice when mortgage refinancing. You can use your mortgage lenders qualify you by cleaning up your credit and pay your debts. Here is an example to illustrate the potential savings from a lower mortgage rate.

Assuming you qualify for a 6.5% interest on mortgage refinancing $ 100,000. Your monthly payment at this rate will be $ 871 on a 15-year mortgages and $ 632 on a 30-year mortgage. The total amount of finance charges you pay for this loan are $ 56,798 for 15 years and $ 127,520 in 30 years. You can see how much you save in financing costs if mortgage refinancing with a loan of 15 years, but what if you create the conditions for a lower mortgage rate?

Suppose, for a 6.0% mortgage rate on the same loan for 100,000 U.S. Dollar. Your monthly fee for this reduced rate would be $ 844 with a 15-year loan and $ 600 with a 30-year mortgage. The entire financing of the costs in this case are $ 51,844 for 15 years and $ 115,820 for 30 years. These lower .5% on the mortgage rate is a saving of $ 11,700 over a 30-year mortgage!

You can now see how the choice of a 15-year mortgage, for the lowest possible mortgage rate will save you thousands of dollars and is well worth your time and effort. To learn more about your mortgage refinancing options, including costly mistakes to avoid, register 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