Possible Options For Your Huntsville AL Real Estate Mortgage

By: Huntsville Real Estate Expert Mike Manosky On February 19, 2013

As the owner or potential owner of Huntsville AL real estate, there are two currently popular options re: your mortgage that you might want to consider:  early payoff and/or shorter term.  As mortgage rates sink deeper into record territory, many homeowners are in a position to explore the possibilities of paying off or paying down their loans or choosing a 20, 15, or even 10 year term rather than the traditional 30.

As with most any financial transaction, experts disagree about the advantages and disadvantages of an early payoff.  Most, however, will tell you that the decision to pay off your Huntsville AL real estate mortgage early should be based on a number of factors, including:

  • Your ability to sustain your desired lifestyle during retirement. If using your savings to pay off the mortgage, don’t forget to give yourself a financial cushion for life’s inevitable surprises.
  • The interest rate you are paying on your mortgage. If your current interest rate is high (i.e., greater than 5 percent or variable) and you are unable to refinance, it might make sense to pay off the mortgage earlier.
  • Your tax bracket (i.e., how beneficial the mortgage interest deduction is to you).
  • Psychologically, the importance of not having a mortgage. Some folks derive significant satisfaction in having no debt; for others, it’s not a big concern.

Much has been written recently about the recent trend of taking out Huntsville AL real estate mortgage loans for fewer than the traditional 30 year term.  More and more homeowners are refinancing, lowering their interest rate, and opting for a shorter-term loan. Also, if you’ve paid down your principal significantly, current interest rates are substantially lower than your old interest rate, your income has increased, or  your non-mortgage debt has decreased, you might be able to afford the monthly payments on a 15-year mortgage. In addition, recent changes in the Obama administration’s Home Affordable Refinance Program (HARP) recently cut the fees for certain borrowers getting new loans if they reduce the term of the mortgage to less than 30 years.   Click here to see interest rate comparisons for varied terms.

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Having lived in the Huntsville AL area for most of his life, Mike Manosky understands exactly what makes this community special.  In fact, those who know him well will tell you he carries the same traditional values and focus on the future as Huntsville. 

Mike brings with him a keen eye for the details of buying or selling a Huntsville AL home and seemingly boundless determination and energy, which is why his clients benefit from his unique brand of real estate service. Rooted in Tradition, Focused on the Future – Mike Manosky will help make the most of your Huntsville AL real estate experience. Give him a call today, 256-508-0211 Direct or 800-803-0053 Toll Free, and discover the difference he can make during your family’s move.

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