FUNDING
The Gi of the 30-Year Mortgage AMERICA’S UNIQUE CONSUMER MORTGAGE LOANS PROVIDE ADVANTAGES OVER OTHER COUNTRIES.
JOEL MOYES
W hen it comes to
and predictability. Here’s why it is such a powerful tool: IT’S OFFERS AFFORDABILITY. By spreading the loan repayment over 30 years, monthly payments are lower than those of shorter-term loans. This makes homeownership more affordable for a larger segment of the population. IT OFFERS PREDICTABLE PAYMENTS. With a fixed interest rate, homeowners have the assurance that their principal and interest payments will remain consistent throughout the life of the loan. This predictability aids in long- term financial planning and budgeting. IT BUILDS EQUITY. Over time, as homeowners make their monthly payments, they build equity in
their property. This equity can be a significant financial asset, contributing to long-term wealth creation. IT OFFERS TAX BENEFITS. Mortgage interest deductions provide substantial tax savings, further enhancing the financial attractiveness of homeownership. LIMITED FINANCING OPTIONS ABROAD In contrast to the U.S., many other countries do not offer comparable long- term, fixed-rate mortgage products, making homeownership less accessible. Let’s look at a few examples: EUROPE. In many European countries, mortgage terms are typically shorter,
homeownership, the 30- year fixed-rate mortgage
stands out as a uniquely American gift. This financial product has empowered countless individuals to achieve the dream of homeownership. Compared to many other countries that lack such accessible financing options, the 30-year mortgage offers significant advantages that make home-buying more attainable and secure for Americans. A PILLAR OF AMERICAN HOMEOWNERSHIP The 30-year fixed-rate mortgage is designed to offer stability
| :: NOVEMBER - DECEMBER 2024
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