If you are looking for monthly savings on your loan costs, consider some
of the shorter term fixed rate loans. Of the 3 year, 5 year, 7 year and
10 year fixed rate products, not all of them offer the same savings
when compared to the 30 year fixed rate loan. As you can see with the
chart above for jumbo loans compared to the 30, the 3, 5 & 7 have
solid savings and the 10 year savings drops off significantly. The jumbo
10 year loan does not offer the amount of savings that the nearest
product (the 7 year fixed) does. Let's review what your holding plan is
for the home and then choose which loan term makes the most sense for
you.
