CLEAR LAKE, IA - People looking to buy a home or refinance an existing mortgage are opting for a shorter loan.
During the first six months of 2010, 26 percent of homeowners who refinanced chose a 15-year fixed rate mortgage. That's compared to just 18.5 percent in all of 2009.
But bankers say if you can't afford the 15-year mortgage payments, there are other ways to save money.
"By taking a 30 year which is in the 4.5% range and adding about $25 a month to your payment you'll save about $9,000 in interest and pay off about 3 years earlier and have that much more equity into the home," said Robin Bratvold, vice president of real estate lending at Clear Lake Bank and Trust.
Bratvold says 15-year rates are currently around 4 percent. She says it's also important to always check and see what fees are associated with your mortgage.
