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Tag Archives: mortgage interest

Is Refinancing into a 40 Year Mortgage Right for You?

  An affordable mortgage payment is a vital aspect of personal finance. With interest rates near historic lows and home values spiking across the country, many consumers are considering mortgage refinancing. The decision to refinance your home can be complicated by various home loan choices. Refinancing into a 40 year mortgage is among the options that may be suitable for you depending on several factors. With best practices drawn from Elliott Broidy, here are some positive and negative attributes of a 40 year home loan. Pros: Yes, a 40 year mortgage can greatly reduce your monthly payment. Since your mortgage balance is paid over a longer term, a smaller mortgage payment will result. Real estate investors such as Isaac Toussie may prefer 40 year mortgages as leverage for low payments on properties that are being developed for future sale or lease. Homeowners who intend to sell their houses in the near term may also consider 40 year mortgages for similar reasons. Since home prices are dynamic, these consumers should also be prepared for declines in equity that may require out of pocket expenses to sell their house. A longer home loan can help you stay in or buy a home ...

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Does It Make Sense to Pay Off The Mortgage Early?

About two years ago, I went to an optometry conference hosted by the Public Health Service. I started my career with an PHS residency, and was very close to taking a career position with the government. I ultimately chose to go into the private sector, and bought my own practice in 2002. It has been rewarding in many ways, but I was growing disillusioned with being a business owner, and this conference made me consider going back to working at a government clinic. The wheels started turning, and now I am a month away from selling my practice. Since the buyer has worked for me for the past two years, I am comfortable carrying his business loan as a seller finance.  I will continue to see patients part time in my old office and at a public health clinic (best of both worlds!) on a part time basis. I own our office building, and the buyer will stay in the same space and rent from me. With my husband’s income, my part-time income,  rental income from our residential and commercial properties, and the loan payment from my buyer, we should be doing well barring some unforeseen circumstance. Now that I’ve gone around the world with that introduction, the big question of ...

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