The question of which mortgage to apply for is a common one. Do you go for the 15 year or the 30 year mortgage? Both have specific pros and cons and depending on your unique situation, determining which one is right for you can be difficult. So let’s look at the numbers.

Lower Monthly Payments = Higher Total Interest

The main difference between these two options relate to monthly payments. With a 30 year mortgage the monthly payment is lower than with the 15 year option. However, because of this, you will pay more in interest fees. For that added 15 years there is a potential for you to pay an extra $100,000 in interest payments alone.

That may sound like a huge “con” in terms of the 30 year mortgage option but it’s not if you’re driven by smaller monthly payments. In the same above example that worked out an extra $100,000 in interest fees for a 30 year mortgage, will also show a monthly payment difference of roughly $400. That’s $400 that could go to any number of other expenses, like childcare.

So the main question to ask yourself about 15 and 30 year mortgages is how much do you want to pay monthly? If you’re fine with paying more in interest fees, go with the 30 year. If you’d like your monthly payment to be a bit higher to get out of debt faster, then choose the 15 year.

You also want to consider how long you plan on staying in the house. If you’re considering retiring to a different location sooner rather than later then a 15 year mortgage may be a better option. But if you’re just starting a family in a home and neighborhood where you feel comfortable and plan on staying then a 30 year may be better suited for you.

The best way to go about this process is to do some initial research that outlines all of the fine print differences between these two mortgage options before you talk to a lender. In most cases it’s more beneficial to take a 15 year mortgage if possible because of the interest fees. But if you go with a 30 year mortgage you can invest the money you’re saving in monthly payments and still have the option to pay off the loan in 15 years. It’s a personal decision that’s different for different situations. Consider yours carefully before heading into a lender’s office. The last thing you want is to lose your house so make sure you choose a mortgage that you can live with.

Northwest Georgia Bank is a leading Chattanooga home loans bank that offers Chattanooga mortgages for first-time home buyers and those looking to build or buy second homes for their growing needs.

This year we see that the financial habits of most Poles are changing. One very specific change is that mortgages are very popular in this country. This is very new since for years Polish citizens did not feel comfortable borrowing from banks. Today, we see the opposite. What are the causes or underlying reasons of such a behavior change? Here are just a few explanations:

Influence from the West

Probably one of the best explanations for this is the influence of the West on Poland and its people. Since the globalization of Poland a lot of things have changed. We also have to remember that Poland joined the EU in 2004. After that, a lot of young people went to different countries for job or education. They got exposed to different cultures with different values and financial behavior. When they started coming back to Poland, they came back with both identities: one of a Polish citizen and the other of the foreign country they were staying at.

Marriage at a Far Younger Age

There is no doubt about it that today we see marriages at a far younger age than in the past. Without financial stability and proper cash flow, new couples are forced to take out a mortgage (called kredyt mieszkaniowy in Poland) in order to move into the same home. This is just one of the possible causes.

Another thing that is important to mention is that there are lots of resources available to Polish citizens. Any person who looks for a mortgage loan can use tools such as a kalkulator kredytowy (mortgage comparison engine), or customer reviews. These are just a few resources, but there are many more. The important thing is that everyone has everything he needs to make the right decision.

Buying a home is one of the biggest decisions a person makes in their lifetime. Undoubtedly, this major decision is accompanied by many other decisions such as deciding on a neighborhood, selecting a floor plan and even choosing home décor. Yet before we can find answers for any of these questions, we must first understand how much money we have to work with, and that task requires choosing a mortgage.

The thought of taking out a mortgage may seem daunting, overwhelming and simply unpleasant. However, when equipped with the right knowledge, you can select a mortgage with peace of mind and assurance. When making your mortgage decision, keep in mind these tips:

1. Understand the types of mortgages that exist. While there are many mortgage products available, most mortgages can be placed in one of four categories. These include the following:

• Fixed Rate:  These are traditional loans that typically include terms for 10, 15, 20 or 30 years. Your monthly payments for interest and principal on these loans are among the most predictable and constant, since they do not change over the life of your loan. Down payments are typically much lower than for other types of loans.
• Adjustable Rate:  These mortgages have fluctuating interest rates and payments that change with the market’s interest rates. While they typically start out at a lower interest rate, they are often adjusted annually—if not more frequently—and increases may be capped for a specific year as well as for the term of the loan.
• Balloon Mortgage:  If you’re planning to move in 5-7 years, but still want a low interest rate, these mortgages might be ideal for you. It’s important to note that these loans must be paid at the end of the 5-7 year term or else you’ll have to take out another mortgage to finish payments on the first one.
• Jumbo Loans:  When buyers need to take out more than the maximum amount for average loans, which is typically $252, 700, then a jumbo loan may be the right option.

2. Get pre-approved for a loan prior to house hunting. The lender of your choice can take care of this step for you, and once pre-approved, you can actually buy a house if you find one you like. Keep in mind that you are not required to borrow the full amount that they are willing to lend you. The approved lending amount is a maximum; the less you have to borrow, the better.

3. Decide whether you should pay discount points. Paying points requires paying money up front to help lower your monthly payments. Usually each point is the equivalent of one percent of the borrowed amount. Typically, if you plan to be in the house for a long period of time, then it can be beneficial to pay points, since you’ll end up spending less in overall interest. A lender can advise you whether paying points would be advantageous for you.

Mortgages require research and patience, yet choosing the right mortgage can help pave the way for future decisions that will increase your satisfaction and peace of mind as you plan for your new home.

Northwest Georgia Bank is proud to be a leading Georgia home loans bank. With additional branches in Chattanooga, Northwest Georgia Bank offers competitive mortgage rates in Tennessee and provides our customers guidance on selecting the right mortgage to purchase their dream home.