Choosing a simple 30 year home loan is the right choice for many home owners, because the interest rate remains the same and the payments are not due in a short time frame. But this could also mean that you pay more on your interest in the long run.

Some benefits of the thirty-year home loan include lower monthly payments, 100% tax-deductible interest and the ability to purchase a larger, more expensive home. Though the overall interest paid on the thirty-year loan is thousands extra, you can reduce that interest by paying extra payments when your finances allow.

To give an illustration of the difference in interest rates between those of a 30-year home loan and the rates for home loans of other time periods. For a 30-year term, 100,000-dollar loan with 7% interest rate the monthly payment of interest and principal for you would amount to 5.30 dollars. During this period of next 30 years you will have made a payment of 9,511.04 towards the interest component only. Comparing this with a 15 year home loan rate on an identical amount the monthly payment by you would calculate to 1.11 per month and for the subsequent 15 years, the amount paid would be ,799 in interest. This would result in savings of ,712 dollars for you.

There are times when the 30-year home loan still makes sense. Specifically, if you can invest the savings you accrue each month from the lower monthly payment in an investment whose long-term payoff is equal to or greater than the savings from the shorter mortgage, then you should do so. On the other hand, you need to think about how fast you want to build equity or own your home entirely. With a thirty-year loan, building equity is much slower.

The home loan for longest duration is 30-year home loan and it is attracting a lot of people towards it. A lot of experts say that the longer duration home loans provide good repayment options and better benefits than the short duration loans. However, considering your financial goals before getting a home loan is always advisable. The home loan should match your financial condition, goals and your requirements. One can find suitable home loan schemes, if he is aware of his goals and financial conditions.

If you live in South Africa then using FNB home loans for your 30 year mortgage is the best way to go.

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