Why Experts Urge Homeowners to Switch to 15-Year Mortgage

LOS ANGELES, Sept. 14, 2021 /PRNewswire/ -- Lendgo-- Why do popular finance experts Clark Howard and Suze Orman urge people to switch to a 15-year fixed loan? They understand how a shorter term and a lower rate combine to bring irresistible savings. Popular quote comparison site Lendgo reports an uptick in people exploring shorter terms.

"Let's run through the advantages of a shorter-term loan," says Orman. "For starters, the interest rate is lower. … Because of the lower interest rate and the shorter payback period, you owe a lot less interest on a 15-year, over the life of the loan."

Savvy homeowners see beyond lowering their monthly payment when rates are as low as they are now. They avoid adding tens of thousands of dollars to their mortgage and, instead, slash many expensive years off the term while keeping their payment about the same.

Nobody knows how long this golden age of low rates will last. Look into what you can gain by refinancing today.

Save a Lot of Money Without Adding Years
The rates on 15-year loans are lower than other terms. Homeowners who seize these rates to swap their long mortgage for a short one can save tens of thousands of dollars in interest! 

"If you have 23 years left on your mortgage, don't go into a new 30-year loan," advises money guru Howard's blog. "If you can't afford the payment of a new 15-year loan, it'd be much better if you go into a 20-year loan."

Seize the opportunity to shorten your term and save HUGE on interest.

The Numbers
Let's say you borrowed $300,000 a few years ago, when rates were typically 4.9%. Stay on that road, and in 30 years you will have paid $276,472 in interest.

But what if you got one of today's low rates, a rate so low you could own your home outright in 15 years? The new mortgage pays off the old one AND speeds up the clock. On this new road, you save over $137,000 in interest.

Total interest has been slashed in half. That's the power of a low interest rate and shorter term. It's a win-win when you can cut several years off your mortgage AND save $137,000.

Related website:
www.lendgo.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/why-experts-urge-homeowners-to-switch-to-15-year-mortgage-301376780.html

SOURCE Lendgo