By AnnaMaria Andriotis | The Wall Street Journal
More wealthy borrowers are ditching the 30-year mortgage in favor of shorter repayment periods. The reason: lower rates that can save borrowers thousands of dollars in interest over the life of the loan.
Lenders say much of this demand is for refinancing. Rather than restarting the clock on a new 30-year mortgage, existing borrowers may be able to keep a similar monthly payment with a lower rate on a shorter-term jumbo.
Home buyers are also interested. As mortgage rates rise, affluent borrowers face a dilemma: sign up for a costlier loan or forget financing and pay all cash for the home. The latter option means giving up attractive tax benefits; borrowers can usually deduct interest payments on up to $1 million of mortgage debt.
