Monday, August 17, 2015

A: The main reason buyers sign on for this type of loan, which adds 10 years to the traditional 30-year mortgage, is to take advantage of smaller monthly payments.

According to real estate experts, the shorter-term loan is usually more advantageous for the homebuyer. The drawback becomes apparent simply by calculating the cost of additional interest payments, which can total thousands for the privilege of just saving the difference of a few dollars in monthly mortgage payments.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com