Zack childress reviews many investors would have come across the term 15year mortgages or 30 year mortgages. It is one of the important decisions to be made by the investor which will have an effect for a long time as you have to manage finances. Consider your financial status and how much you can afford every month, and then select an appropriate plan. Consult your tax adviser, money lenders, real estate professionals and accountants to get better idea before choosing a scheme.
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Zack Childress real estate reviews talks about the pros and cons of 15 and 30 years mortgages.
- Instead of 30 years, you can finish the paying your mortgage due in 15 years is the first and foremost the biggest advantage that you could get.
- The interest rates are less for a 15year mortgage scheme than a 30-year mortgage plan. In the longer run, you save a lot.
- Building equity is faster, equity increases when mortgage decreases and property value increases.
- The monthly mortgage payments are higher for 15year mortgage plan than a 30year mortgage plan. When you earn less, you will be unable to pay high mortgage.
- The tax deductions are reduced. The borrower pays less interest every year if he avails 15 year mortgages, so obviously his tax deductions are less.
- In the longer run when you want to save funds for your retirement or for your children’s education, you will be unable to save due to high mortgage.
- In case of 30 year mortgage plans, if the borrower is affordable to pay more than what he has to, it’s possible and finish off the scheme earlier whereas in 15year mortgage plan he cannot make less payment when he is facing a financial crisis.
- Credit score and down payment can affect the interest rate while you avail mortgage.
- When you sign the deal, you cannot back out of a 15year mortgage plans, you have to pay high payment every month even though you are in a financial crisis.
30 year mortgage schemes
- The monthly payments are low and affordable by most of the investors.
- This scheme is affordable even when an investor is undergoing a financial crisis.
- You can save money for other purposes like retirement, education etc. The financial management is very important in a family.
- With the savings, the investor can do home improvements as well bi-yearly.
- You can avail low tax liability.
There are many mortgage scams that are prevailing in the real estate in the name of mortgage frauds. The new investors should be aware of such scams before availing a 15 or 30year mortgage plans