With the recent drop in interest rates (and the over-all trend in property values), the 10 and 15 year mortgage has become much more desirable. Lately, the 15 year mortgage money is under 4% and allows homeowners to re-finance to a phenomenal rate and get back to building equity in their homes. In some cases the payment may not go up, or up that much, when coming out of a 30 year note. The interest savings over the life of the loan are staggering and make the decision very easy if the payment can fit into your budget and/or you qualify.

If I was a first time borrower or homebuyer, I would seriously look at a 15 year mortgage and stick to my guns and pay it off. Look at buying less of a house than you really want and pay it off in 15 years or less. Imagine being 25 years old and having a house free and clear by the age of 40 or less! In your younger professional years, your income will normally grow into the mortgage payment. If you get transferred, keep the house and rent it out. The instinct is always to buy more house than you need, but in today’s economic environment, less house is probably a more desirable default position.

I’m not going to clog the pages with numbers, rates and payments, etc. I can easily be reached for an in depth analysis on the subject and I’m more than happy to break down the numbers and delve into the details.

Author's Bio: 

I currently live, work and spend my free time in the Hampton Roads area of Virginia, I enjoy spending time with family, playing tennis, golf and enjoy reading and education. I also enjoy cycling , as Virginia Beach is a bicycle friendly town with great bike paths and cycle clubs you can join. My daughter graduated from ODU and I currently have two sons at Virginia Tech, and my wife works in a local elementary school with kindergarden age children analyzing their reading skills. Since my last child went off to college, I made a decision to spend more of my time merging my professional life and my personal life giving back to the community. I am dedicating more time with financial education, community housing organizations and I am starting a foundation for charity youth programs through a partnership with Modern Woodmen. I enjoy writing about outdoor life, business philosophy, education and charitable ventures.

Please comment and link up, so we can learn and share ideas and grow our influence respectively in our communities.