Shopping for a mortgage in Fremont, can seem like a daunting task. Often first time home-buyers spend all of their time focusing on interest rates or finding the most money for the lowest payments, all the while missing the most basic and important question of the whole process. The question you should be asking is, "How do I decide which mortgage term suits me the best?"

30 Year vs. 15 Year Mortgages - Which Suits You Best?

Home-buyers in Fremont, always seem to focus on the wrong aspects of the mortgage process. Yes, finding a low interest rate and securing the most money for the lowest price is very important, but before you can even think about that information you have to ask yourself this simple question - "Should I go with a 30 or a 15 year mortgage?"

Don't get me wrong, interest rates and monthly payments are VERY important factors. However failing to answer this basic question first has, and continues to cause, home-buyers in Fremont, to lose both time and money. 

When you are considering which term length will fit you best there are two extremely important questions you need ask yourself.

1. How long do I want to be obligated to this home?
2. How much am I willing to pay in interest when this is all said and done? 

Building equity is a serious process. Before jumping right in, it's a good idea to understand why the length of a loan is so significant. What I am about to share with you can easily save you loads of time and money, not to mention it will make the whole process go much smoother. 

Longer Loans - pros vs cons
With longer loans you get the added benefit much lower monthly payments. The trade-off here, is that eventually you will end up paying more in total interest. This scenario almost always seems like a great deal at the time. Who wouldn't want to pay less now, and still get the house of their dreams?

It is a good idea to take time to sit down and seriously look at your future financial forecast. Decisions by past home-buyers in Fremont, California looking to take the easy road has, on occasion, backfired in the long run.

Interest Rates - tips and tricks
Everyone tries to save money on their home mortgage. Yet most home-buyers in Fremont, focus too much on the interest rate alone. What many people do not know is that adjusting the length of your mortgage is a much more effective way to save you a lot of money. Lets not forget that the longer you have someone else's money the more you are going to have to pay in the end.

The simple solution is, if you have the ability, to cut the payments in half by going with a shorter loan. You can save huge amounts of money the total interest repaid to the lender in Fremont. 

Decisions, Decisions
Determining the length of your mortgage in Fremont, has the possibility to be a very easy decision. If you take the time to seriously consider whether or not you can comfortably afford the higher monthly payments that are a result of shorter loans.

While deciding which mortgage term is right for you, keep this in mind. As a general rule of thumb in Fremont, California, 15 year mortgages run approximately 20 to 25 percent higher than their 30 year counterparts. This means that in the end you will be paying off your loan much faster, all the while, building home equity much more quickly.

When it finally comes down to making the decision, the only real factor is you and the situation that you are in. Do you feel like you can comfortably afford the higher monthly payments? Is it worth the sacrifice now in order to reap the benefits later down the road? Would it be a better decision to take a longer loan in order to spread out the overall cost? How long are you planning on living in your new home? Having a solid answer to each of these questions will, without a doubt, help you in your mortgage journey. 

The Fremont, mortgage industry offers a multitude of different term length products. Make sure to take the time to understand different terms, this will dramatically increase your chance of finding a loan in Fremont, that is perfect for your situation.

There is a lot of free information available to you about buying, selling, investing, or relocating in the Fremont real estate market. For complete information about the Fremont Ca real estate market including current Fremont homes for sale, property values, market conditions and more please visit the most complete website dedicated to everything Fremont real estate related. www.ClydeBrownHomes.com.

If you or someone you know are in need of a competent and experienced Fremont real estate agent in or near Fremont Ca, or have real estate or mortgage related questions, please feel free to contact me I will be more than glad to answer your questions. Call me at 800-839-0665 or email me at Clyde@ClydeBrownHomes.com. Clyde Brown Legacy Real Estate & Associates.

Photo by julishannon @ Flickr