News Releases
Be Mortgage Free, Years Before You Thought Possible
CHICAGO, February 13, 2012 - As a homeowner, choosing the right mortgage is an important step. With a number of options available, you 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. A 20 year term ensures that homeowners can build equity quicker and pay off their debt faster.
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:
|
20 Year Term |
30 Year Term |
Mortgage Value |
$200,000 |
$200,000 |
Mortgage Rate* |
4 per cent |
4 per cent |
Monthly Principal and Interest Payment Amount |
$1,212 |
$955 |
Total Interest Cost |
$90,871 |
$143,739 |
* The chart above assumes an average interest rate of 4 per cent over the life of the mortgage. The rate shown is used for illustrative purposes.
"BMO Harris Bank offers an array of product options, such as the low-rate mortgage with a maximum 20-year term, that we believe are directly relevant to today's environment and specifically designed to help American consumers manage their debt," said Randy Raup, Senior Vice President of Retail Lending, BMO Harris Bank.
"This is a great opportunity to revisit your financial goals and find a mortgage solution that makes sense for you".
About M&I, a part of BMO Financial Group:
Established in 1817 as Bank of Montreal, BMO Financial Group is a highly diversified North American financial services organization. With total assets of $477 billion as at July
31, 2011, and more than 47,000 employees, BMO provides a broad range of retail banking, wealth management and investment banking products and solutions.
About Hunger Task Force:
Hunger Task Force makes sure donations stay Free & Local. Last year ten million pounds of food were delivered free of charge to 80 food pantries, soup kitchens and homeless shelters right here in Milwaukee. Hunger Task Force believes that every person has the right to adequate food obtained with dignity. We work to prevent hunger and malnutrition by providing food to people in need today and by promoting social policies to achieve a hunger free community tomorrow.
Anna Seifert, (312) 461-6199
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