Boost buying power without the higher paymentsFinance a 40-year mortgage and give yourself the flexibility of spending just a little bit more on the home you really want—with payments that are still affordable. A 40-year mortgage works similarly to a traditional 30 or 15-year fully amortized loan, but here is the difference—a 40-year mortgage payment is based upon a variable interest rate (3-year adjustable or 1-year adjustable) that is amortized over a 40-year period. This financing option not only gives you lower monthly payments than a traditional 30 or 15-year loan, but those lower monthly payments can also help you qualify for a larger loan amount.
Monthly savings comparison
(based on a $500,000 loan amount)
30-year-fixed rate at 6% APR $ 2997.75
40-year adjustable at 5% APR $ 2684.11
You could potentially save $313.64!
Pay off your mortgage and build equity much faster!
With a new Bi-weekly mortgage offered at Tech CU, every payment that you make gives you significant interest savings and builds your home equity much faster!
Here’s how it works:
With a Bi-weekly mortgage, payments are deducted bi-weekly and applied to your loan every 14 days—instead of a single monthly payment. What this means to you is that your mortgage will be paid off much sooner, resulting in significant interest savings over the life of the loan just for making bi-weekly payments!
Payments that Fit your Best Interest
Purchasing or refinancing your home is a big step for many homeowners. What’s most important is finding a monthly payment plan that fits your budget without over-extending yourself. Our solution—finance your home with interest-only payments!
Interest-only payments not only give you the benefit of helping you qualify for a larger loan amount with smaller payments, but they also help to reduce your monthly payment obligations. Because you are paying only interest, you can save yourself a little extra cash every month to put toward other expenses or allocate more towards the principle balance on your mortgage loan. Whichever you choose, you will have peace of mind knowing that you can lower your monthly expenses through interest-only payments.
To learn more about Tech CU’s mortgage products and services, visit our Mortgage Center or contact a Mortgage Consultant today!
http://www.techcu.com/learning/home_buying/interest.htm
