- There are several ways a new home-buyer can save money. From major moves like refinancing a mortgage, to more humble acts like bundling Internet and cable with one company, the savings potential for new or prospective homeowners is big.
- Borrowers who are still shopping for mortgage loans, or those considering refinancing, may want to look at a loan with a term of 15 years instead of 30 years. Paying off the house in 15 years instead of 30 years has some advantages, as well as some challenges.
- On the plus side, a 15-year loan typically means a lower interest rate. Most lenders offer a rate that’s at least a half percent lower than the rate for a 30-year loan, which means borrowers can pay much less interest over the life of the loan.
- As for the challenges, because the borrower is paying off the loan in half the time, the monthly payment will be higher. It’s important the borrower is comfortable with the payment, and can afford it.