First State Bank and Trust fsbt.com 4 Key Benefits of a Long-Term Mortgage Many people have a misconception about housing loans, leaving them in doubt about opting for a long-term mortgage in Hudson/Stillwater. Of course, shorter mortgage loans have interest-saving benefits, but long- term mortgages come with many positives that can put your mind to rest from doubts. Even if your income is low, you can also approach your bank in Stillwater, Hudson/MN, WI, for a long-term mortgage. You only need a good credit score to apply for it, and you can get them through e- banking in Hudson/Stillwater. Check out some of the benefits of a long- term mortgage here. First State Bank and Trust fsbt.com Benefits of a Long-Term Mortgage in Hudson/Stillwater 1. Building Equity People buy a house to build equity. Then, you can liquidate it for wedding or education expenses whenever you need. Getting a long-term mortgage does not lower your equity. Instead, it has minimal effect on the overall equity of your house. Take an instance:- You buy a house for $400,000 with a $50,000 downpayment. For the rest amount($350,000), you take a long-term mortgage paid in 30 years at 4%. Your downpayment is the initial equity. If your house value grows at 3% per year, your property becomes worth $722,444 after 20 years. Even if you can pay just $200,000 of the initial amount ($350,000), the difference of $572,444 is the overall equity built on your house. 2. Low-Interest Rates Any bank in Stillwater, MN/ Hudson, WI might offer a 0% interest rate credit card for six months. But after that, the interest rate shoots to 18%, and if you borrow a hundred thousand dollars at such a high rate, it will be impossible to pay back over 30 years. If you can demonstrate your bank's ability to repay the loan in the stipulated time (15 or 30 years) with a positive credit score, they might lower the interest rate. Whereas in long-term mortgages, risk on the part of the bank is minimal. First State Bank and Trust fsbt.com 3. Tax Savings Your mortgage interest rate is tax-deductible if you buy a house up to $1 million. For example, if you are in the 33% tax bracket and invest an amount at 5%, the profits would get taxed at 20%, allowing you to keep just 4% profit after tax. 4. Easier EMI in Long Run When you have a fixed-rate long-term mortgage loan, even if initially you find it difficult to bear, in the long run, it gets smoother. The EMI stays constant, but your income rises steadily over 15 or 30 years. Moreover, the house value also grows substantially over time, letting you liquidate the equity easily. Conclusion If you are buying a house, consider the benefits of taking a long-term mortgage in Stillwater/Hudson. First, talk to your bank officials in Stillwater, MN/Hudson, WI, and get them at inexpensive rates. Then, utilize its benefits for an intelligent financial decision. Source: https://bayportbanks.wordpress.com/2022/06/23/benef its-of-a-long-term-mortgage/