Shortening Mortgage Term Can Save You Thousands
KANSAS CITY, Kan., Feb. 13, 2012 /PRNewswire/ -- As a homeowner, choosing the right mortgage is an important step. With a number of options available, you tailor your mortgage to your lifestyle, your current financial situation, and your risk tolerance. For those looking to be mortgage free sooner choosing a mortgage with a 20 year term instead of a 30 year term can save thousands in interest costs over the life of a mortgage. A 20 year term ensures that homeowners can build equity quicker and pay off their debt faster.
Here is an example of how choosing a 20 year fixed rate mortgage instead of a 30 year could save you more than $52,000:
|
|
20 Year Term |
30 Year Term |
| Mortgage Value |
$200,000 |
$200,000 |
| Mortgage Rate* |
4 per cent |
4 per cent |
| Monthly Principal and Interest Payment Amount |
$1,212 |
$955 |
| Total Interest Cost |
$90,871 |
$143,739 |
| * The chart above assumes an average interest rate of 4 per cent over the life of the mortgage. The rate shown is used for illustrative purposes.
|
||
"BMO Harris Bank offers an array of product options, such as the low-rate mortgage with a maximum 20-year term, that we believe are directly relevant to today's environment and specifically designed to help American consumers manage their debt," said Rob Bradshaw, Kansas City Mortgage Market Manager, M&I, a part of BMO Financial Group.
"This is a great opportunity to revisit your financial goals and find a mortgage solution that makes sense for you."
About BMO Harris Bank
Based in Chicago, BMO Harris Bank N.A. provides a broad range of personal banking products and solutions through approximately 700 branches and approximately 1,350 ATMs in Illinois, Wisconsin, Indiana, Kansas, Missouri, Minnesota, Nevada, Arizona and Florida. BMO Harris Bank's commercial banking team provides a combination of sector expertise, local knowledge and mid-market focus throughout the U.S. Deposit and loan products and services provided by BMO Harris Bank N.A. Member FDIC. BMO Harris Bank℠ is a trade name used by BMO Harris Bank N.A. BMO Harris Bank is part of BMO Financial Group, a North American financial organization with 1,600 branches, and a retail deposit base of approximately $180 billion. Equal Housing Lender. NMLS# 401025
SOURCE M&I, a part of BMO Financial Group
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