LEAWOOD, KS — (Marketwire) — 02/12/13 — If you could save thousands of dollars over the life of your mortgage AND pay the loan off 10 years sooner, would you be willing to spend just a few hundred dollars more each month on your mortgage payment?*
BMO Harris Bank knows that it is important for a homeowner to choose the right mortgage. With a number of options available, you should tailor your mortgage to your lifestyle, your current financial situation, and your risk tolerance. For those looking to be mortgage free sooner, choosing a mortgage with a 20-year term instead of a 30-year term can save thousands in interest costs over the life of a mortgage without a significant increase in your monthly payment.
Here is an example of how choosing a 20-year fixed rate mortgage instead of a 30-year could save you more than $52,000:
* The chart above assumes an average interest rate of 4 percent over the life of the mortgage. The rate shown is used for illustrative purposes. Typically, rates are lower for a 20-year term which may save you additional interest costs.
“In addition to the interest savings from the shorter term, a 20-year mortgage rate is currently lower than a longer term; which means you could save additional money,” said Robert Vejar, Vice President, Kansas Mortgage Market Manager, BMO Harris Bank. “A 20-year term ensures that homeowners can build equity quicker and pay off their debt faster.”
With interest still at historic lows, it-s not too late to revisit your financial goals and find a mortgage solution that makes sense for you.
Based in Chicago, BMO Harris Bank N.A. provides a broad range of personal banking products and solutions through over 600 branches and approximately 1,300 ATMs in Illinois, Wisconsin, Indiana, Kansas, Missouri, Minnesota, Nevada, Arizona and Florida. BMO Harris Bank-s commercial banking team provides a combination of sector expertise, local knowledge and mid-market focus throughout the U.S. Deposit and loan products and services provided by BMO Harris Bank N.A. BMO Harris Bank is part of BMO Financial Group, a North American financial organization with 1,600 branches, and a retail deposit base of approximately $180 billion. Banking deposit and loan products and services are provided by BMO Harris Bank N.A. and are subject to bank and credit approval. BMO Harris Bank is a trade name used by BMO Harris Bank N.A., Member FDIC. Equal Housing Lender. NMLS#401025
Contact:
Carey Allen
(480) 558-6383