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Another Mortgage Idea & RatePosted by Cathy Meder on Wednesday, February 2nd, 2011 at 4:14pm.
10 year fixed rate mortgage anyone?
Have you considered doing a 10 year fixed rate mortgage? It's an idea and its time has (probably) come. At least for some people because being debt free is very cool. It gives you a freedom that is hard to describe and easy to enjoy.
So, I just saw this rate today from one lender. A 10 year fixed rate at 3.5% - the low rate is certainly enticing and only 10 years to a Dave Ramsey moment! It does sound kinda good, doesn't it?
Here are some more specifics: the APR is at 3.75%, the loan is less than $417,000, you gotta have a 740 credit score and they want you to have a 20% stake in the home. So, 20% down is a chunk of change but that is the idea isn't it - home ownership mortgage free in 10 years is a great goal!
I am predicting that people will be purchasing smaller, less expensive homes in the short term, so the $417,000 maximum on this loan is not that big a deal. Also, considering that a $417,000 home was a $834,000 home just three years ago, I be may somewhat "off" on the smaller home prediction. And yes, I am approximating on the 50% drop in home values - it is really more like 35% overall in our fair city although I have seen a 50% drop and more on some properties.
These are interesting days, aren't they?
If you can do a 10 year loan and pay it off, do it! Get debt free. You will never regret it; not ever.
RE/MAX Around Atlanta
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