According to recent data, an increasing number of consumers have begun applying for 15-year home loans in place of the normal 30-year terms to refinance their mortgages.
During August, according to figures accumulated by a mortgage website, the number of refinancing loan applications for 15-year mortgages increased 29 percent from the previous year. By comparison, 30-year home loan refinancing applications were up 12 percent.
"It's all the trend right now," Kristine Marr, a senior loan officer, told the Contra Costa Times. "Most borrowers are asking about switching to a 15-year-loan. Everybody's in a mood now to get those mortgages paid off. They want to see an end to those payments, and that's what's driving it."
While 15-year mortgages require larger monthly payments than 30-year terms, they can provide more savings in terms of interest payments.
Another mortgage experts believes consumers have an eye on retirement when opting for 15-year terms, as many hope to build equity faster. Obtaining a 30-year loan when consumers are planning to retire in 20 years isn't a good investment, the expert told the news source.
With interest rates for mortgages falling to record lows recently, and the local job market continuing to improve, more Houston properties may be sold soon.
Courtesy of 2M Realty News