Should You Go for a 15 Year or 30 Year Mortgage?

One of the biggest questions you will face when you are deciding on financing to purchase your home is the length of time you will choose. The amount of time on your home loan will have a lot of implications financially and can change the way you live from month to month. For example, a 15 year and a 30 year mortgage will each have its own set of unique advantages for you to evaluate. Buying a home can be a great investment that brings your years of joy and happiness, but only if you get your financing taken care of the right way. Remember that you can always reach out to All American Financial Services if you are looking for home financing. Below, we will be discussing whether or not you should go for a 15 year or a 30 year mortgage for your home purchase.

Whenever you are evaluating a major financial decision, the first thing you should do is take a detailed look at your own financial situation. That way, you will know exactly what you can afford before you apply for a home loan. Think about things like your monthly income, what debts and bills you have to take care of each month, how much money you have saved up, and what your overall credit score is. Creating a detailed budget after you figure out what all of those number are is the best way to decide on either a 15 year or 30 year mortgage.

The truth is that 30 year mortgages are the most common. It’s a time frame for a home loan that allows you to keep your monthly mortgage payments lower, which is extremely helpful for people who are pressed for cash each month due to bills and debts. A 30 year mortgage is a great option if you plan to be living and raising a family in your home for many years to come. It’s also a great option for young families, thanks to those lower monthly payments. Since the monthly payments on your loan will be lower, you can focus on paying off other debts like student loans and build up your personal savings as well.

A 15 year mortgage is another option to consider when you are buying a home. If you understand how mortgages and interest works you know that a shorter timeframe on your mortgage means you will be paying less interest. This can be a good option if you are someone that is closer to retirement, as you can get your mortgage paid off prior to your retirement. You also will be building equity in your home a lot faster with a 15 year mortgage. These are certainly big advantages to consider, but keep in mind that your monthly payments will be costlier with a 15 year mortgage.

We hope this article has given you some great insight into whether a 30 year or 15 year mortgage is the right choice for you. Connect with All American Financial Services today to hear about all of our home loan options.

Big Mistakes to Avoid When Getting a Home Loan

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Purchasing a home can be a very exciting and eventful time in our life. That being said, it’s easy for emotions to get the best of us and lead us to make poor financial decisions. Buying a home is one of the biggest purchases you will ever make in your lifetime, so you want to make sure you get the home loan that makes the most sense for you financially. We want you to avoid making mistakes when you are getting your home loan, which is why we’ve put together the following article. Keep reading on below to learn about some of the biggest mistakes that people make when getting a home loan and remember to reach out to All American Financial Services if you’d like to hear about the best loan options on the market.

1. Only Considering the Monthly Payments

If you are shopping around for a home loan and are only focused on the monthly payments, you could be making a huge financial mistake. If you think you can afford $1000 per month in rent, it doesn’t necessarily mean that you can afford a mortgage payment. There are plenty of expenses that are associated with purchasing a home that you absolutely have to consider. For example, you need to look at expenses like closing costs, down payments, inspection fees, homeowners insurance, and more. Neglecting to look at the big financial picture and only focusing on monthly payments is a big mistake that is easy to avoid.

2. Investing Your Savings as the Down Payment

Purchasing a house can be an incredible opportunity if you find a property that meets all of your individual needs. However, it’s important to think about how you are going to pay for the house. Some people are under the impression that investing more to put down a bigger down payment is a great option. The truth is that investing your savings as the down payment will leave you without an emergency fund and can put you in a difficult situation financially. Don’t make the mistake of putting down all of your savings as the down payment on your home.

3. Not Managing Expectations

If you are shopping for a home and you don’t manage your expectations in terms of the sizing and price of the home you end up purchasing, you are making a massive mistake. The last thing you want is to be locked into a 30 year mortgage that you can’t afford. You also want to avoid a home that is too big for both you and your family. Big houses are not only expensive upfront but also cost a lot to maintain. Manage both you and your family’s expectations when you are shopping for your home to avoid making a poor financial decision.

Remember these three common home loan mistakes to avoid putting yourself in a poor financial position. You can always reach out to All American Financial Services if you have any questions about home loans or obtaining the financing you need to purchase your home.

Advantages of Refinancing Your Mortgage

If you are a homeowner, the chances are you are always looking at ways that can help you improve your financing terms. Mortgages tend to be long-term commitments, which means interest rates can change dramatically over the years. The opportunity to refinance your mortgage can be a great chance to save money and improve your mortgage terms. Refinancing your mortgage essentially means that you will attain a new mortgage with better terms to pay off your old mortgage. It’s an option that can make a lot of sense for homeowners. Keep reading on below to learn about some of the advantages of refinancing your mortgage and remember to reach out to All American Financial Services for all of your home financing and loan needs.

1. You Get a Lower Interest Rate

There’s nothing worse than being locked into a mortgage at a higher interest rate than the market is currently offering. Economic and market factors are constantly influencing the rates on mortgages. If you are a homeowner that is strapped for cash or you are looking to reduce your monthly mortgage payments, you can always look into refinancing. Financial emergencies might make you consider refinancing your mortgage, as you can lower your interest rates and monthly mortgage payments while staying in your home. You can always reach out to All American Financial Services to hear what types of financing options we have to offer you.

2. Lower Mortgage Term

Another great benefit of refinancing your mortgage is that you can lower the term for your mortgage. If you don’t need the cash immediately, you can go from a 30 year mortgage to a 20 year mortgage and save on years of interest payments. It’s a great option for financially savvy homeowners that are looking to reduce the amount of interest they pay over the course of their mortgage. If you have questions about mortgages or would like to discuss refinancing options for your home, reach out to All American Financial Services today.

3. Improve Credit Score

Refinancing your mortgage presents you with a unique opportunity to use cash to pay down other debt. If you have a lot of equity in your home, you can cash-out refinance your home and use the money to pay down other debts that you have. That will directly benefit your credit score, which has a lot of positive benefits as well. Refinancing your mortgage is all about taking advantage of an opportunity to improve your overall financial situation. Don’t miss out on this great opportunity to improve your financial health.

As you can see, refinancing your mortgage makes a lot of sense. Keep the advantages mentioned above in mind when you are deciding whether or not to refinance your mortgage. Remember to reach out to All American Financial Services if you have any questions about home loans or financing options. We would love to help you improve your financial situation or get the loan you need to purchase the home of your dreams.