Article: Is a 10-Year Mortgage Right For You?
South Carolina Federal Credit Union is currently offering a great deal on fixed-rate 10-year mortgages, as low as 2.625% (2.840% APR*). Plus, with our Best Mortgage Guarantee** you can rest assured that you are getting the best deal. If you have equity in your home or you can afford a slightly higher monthly payment, a 10-year mortgage could save you thousands of dollars in the long run.
Here are three great reasons to refinance to a 10-year mortgage:
- Pay your home off faster. You can nearly eliminate your housing expense (of course taxes and insurance don’t go away) in a third of the time as a traditional mortgage—just in time for many homeowners to start paying for their children’s college tuition.
- Free yourself from the market cycles. On a 30-year mortgage, nearly the first half of the loan is amortized in a way that you are primarily paying interest, so very little equity is being built up. With a 10-year loan, you pay your principal off more quickly. As a result, you build equity up consistently and without relying on the market to increase the value of your home.
- Save money over the life of your loan. Use the mortgage calculator at scfederal.org to see how much you can save in interest over the life of the loan of a 30-year mortgage versus a 10-year mortgage. We guarantee the results will surprise you.
For more information, visit scfederal.org/mortgage
or contact a Mortgage Loan Officer today.
*APR is effective as of 5/23/13, is determined by FNMA 10-year fixed rate loan, and subject to change weekly without notice. Offer available for rate/term refinance or purchase transactions only. No cash-out refinances. Payment Example: If you finance $160,000 for 120 months at 2.625% (2.840% APR), your monthly payment will be $1,517.00. APR based on creditworthiness. Owner-occupied, primary residences only. Additional requirements apply.
**Best Mortgage Guarantee is a limited time offer. Contact us for details.