OC Dwellings - Dwell in Style

Save Big With A Shorter Term Loan

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Save Big With A Shorter Term Loan

Loans with earlier payoffs, such as 15- or 20-year loans, can often result in lower interest rates because they carry less risk for lenders.  The chart illustrates the interest rate savings on a mortgage with a current loan balance of $250,000.  While mortgage payments increase slightly as the term shortens, the savings on interest grows dramatically.