Friday, June 7, 2013

Which Shorter Term Loan Offers the Best Savings?

If you are looking for monthly savings on your loan costs, consider some of the shorter term fixed rate loans. Of the 3 year, 5 year, 7 year and 10 year fixed rate products, not all of them offer the same savings when compared to the 30 year fixed rate loan.  As you can see with the chart above for jumbo loans compared to the 30, the 3, 5 & 7 have solid savings and the 10 year savings drops off significantly. The jumbo 10 year loan does not offer the amount of savings that the nearest product (the 7 year fixed) does. Let's review what your holding plan is for the home and then choose which loan term makes the most sense for you.