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When shopping for a residential mortgage cash advance, most housepurchasers simply focus their attention on the mortgage interest rate. They watch mortgage rates daily, making note of any movement in the mortgage rates, trying to predict a trend in what direction it looks like rates will move in the upcoming weeks or months.

The mortgage rate paid by housepurchasers is clearly an essential factor but it is only one element that will determine your monthly mortgage payment.

Another essential factor (that you can control) that will play a part in determining your mortgage payment is the duration of the house mortgage cash advance (for example 30 years vs. 15 years).

Amortizing your house cash advance over 30 years is standard, but there are other options that will play a big part in your monthly payments as well as how quickly you build equity in your house.

If you amortize your house cash advance over 15 years, for example, your mortgage payment will be higher but you will build equity more rapidly and also be able to find a lower interest rate. Assuming that you could lock in at an interest rate ½ point lower when going with a 15 year note your monthly payments would be about 35% more, which sounds like a lot but your interest expense over the duration of the cash advance will be about 60% less and could save you hundreds of thousands of dollars in the long run.

In summary, a 15 year mortgage cash advance will reduce the total interest you pay and accelerate up the rate in which you build equity in your house, regardless of the interest rate (even though a lower rate will indeed be in reach when amortizing over 15 years vs. a standard 30 year fixed rate mortgage). If your budget allows you to finance your house purchase over 15 years, it is something you should certainly consider. In the long run it will save you thousands.