According to financial guru, Dave Ramsey, you are better off with a 15-year mortgage. His reasoning… “The 30-year mortgage robs your future. It enables borrowers to buy more house than they can afford by spreading the payments out over a longer term. In addition, those homeowners paid tens- even hundreds of thousands of dollars more in interest.”
Dave recommends getting a 15-year mortgage with “at least a 10% down payment and monthly payments that are no more than 25% of your take-home pay. This is a great way to ensure you build wealth quickly and avoid paying a mortgage into your retirement. Paying off your mortgage completely will free up income later for other investments and allow you to live more comfortably as you age.
If you have already committed to a 30-year mortgage loan, there’s still time for you to save and be mortgage free by retirement. Some homeowners have been able to switch to a 15-year mortgage with extremely low interest rates. However, if you cannot afford the 15-year repayment plan comfortably, do not risk it.
Instead, look into the Home Affordable Refinance Plan (HARP), a government-backed program that offers low mortgage rates and was designed to reduce mortgage payments and put money back in your pocket. If you owe less than $650,000 on your mortgage, the chances of qualifying for this program can be high. Homeowners who have refinanced have saved an average of $250 per month.
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Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.
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