When you are buying a home, the industry standard is a 30-year mortgage. However, if you can swing it there are definite advantages to a 15 year mortgage instead. The biggest benefit of a fifteen-year mortgage is, of course, that you pay your home off in half the time and wind up saving a lot of money in interest. In addition you will also accumulate equity in your home faster as you pay off the principal, which could free you up to take out a home equity loan if needed. Of course, you shouldn’t bury yourself to be able to afford a fifteen-year mortgage. Remember that you don’t want to spread yourself too thin… your home should not be your only source of savings. You also want to make sure you can save for retirement and emergencies each month.
Thinking of buying or selling a home in Sussex County? Give us a call at Cooper Realty Associates and put us to work for you – 302-644-2266.