What is the difference between a 15-year and a 30-year fixed mortgage?

Lately we've had a lot of questions from our buyers about the differences between a 15-year and a 30-year fixed mortgage. 

In a nutshell, the biggest difference is in the interest rate that will be charged and in how long it takes to start paying toward the principle of the loan. For both of the common fixed terms, the biggest key is that housing costs won’t be affected by interest rate changes and inflation.

A 30-Year Term: In the first 23 years of the loan more interest is paid off than principal - meaning larger tax deductions. As inflation and costs of living increase, mortgage payments become a smaller part of overall expenses.  Yes, you are paying a LOT of interest at the beginning.

A 15-year Term: Loan is usually made at a lower interest rate. Equity is built faster because early payments pay more principal. And the loan is paid off earlier.  

Of course, compare payments, principal and interest totals to make a decision.  

If you'd like to leverage our mortgage expertise, call the Claus Team today at 210.566.6355 and let us put you in touch with our preferred lender, who can give you details about all of the financing options available to you. 

SABOR Releases February 2014 San Antonio Real Estate Market Statistics

The real estate market in San Antonio is once again on the rise this month. Take a look at SABOR's monthly market statistic video.

If you're ready to capitalize on current market conditions, call the Claus Team at 210.566.6474 and let one of our expert agents chat with you about navigating the buying and selling waters TODAY!

Five Quick Tips To Find a Home

Home buying season is heating up, and at the Claus Team we know that searching for a new home can be an exciting adventure and a rewarding experience. There some great resources to facilitate your research and help you find that home sooner rather than later. Here are some tips to get you started down the right path to that perfect home. The Bigger Picture The best way to start is to create a list of what your ideal home would look like and what features are "must haves". Listing features out in order of importance will help you evaluate your choices down the road once you start looking at possible new homes. Is square footage more important than your commute to work? Knowing the answer to questions like that will help you make trade offs that you can live with. Create A Budget When creating the budget it is important to consider the monthly mortgage payment, as well as the downpayment and closing costs. The monthly mortgage payment will include principal and interest on the loan and usually a monthly amount for taxes and insurance. The price of the home and the interest rate on the loan will have a big influence on the final amount. Taking steps to improving your credit score before you start the homebuying process can pay off huge dividends down the road if you can get a lower interest rate. The down payment and closing costs can vary dramatically depending on the type of loan you select and/or qualify for. Think About Location Location has always been considered one the most important things in real estate. Many factors go into the importance of location. Quality of schools and condition of the neighborhood have traditionally been the leading factors. However commute time, to work and other local destinations, has been growing in importance, likely due to the rising cost of gas. The Homes.com commuter tool is a great way to quickly determine the accessibility of a home. The Search The internet has plenty of listings and photos and is a great way to get started. As your agent I can help cut through some of that clutter and narrow the selection to the homes that will best meet your list of must have features and arrange for you to see them on your schedule. Friends and family can also be a resource for homes to check out, just be ready to remind them that it is you that will be living there and so the decision is ultimately yours to make. When You Find A Home Don't be afraid to "kick the tires" and look under the hood. Even before the offer and an official professional inspection, take a look at the big three: foundation, electrical, and plumbing. This is particularly necessary with older homes. The electrical demands of today's gadgets is far greater than it was even just a decade ago. Leaky pipes can cause considerable damage over time and low water pressure can be a difficult issue to resolve. The more you can discover up front the less time you will waste in the closing process. With the right resources and proper planning you can find that perfect home in less time and with less stress whether this is your first time or you have been through this several time before. Want more expert house hunting advice? Let one of our buyers' agents assist you! Call 210.566.6355 to chat with us TODAY!