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30 Year Fixed-Rate Mortgage

What is 30-Year Fixed Rate Mortgage? Mortgages can be financed in many different terms (length of the note). For fixed rate mortgages, 10-year, 15-year, 20-year and 30-year terms are the most common. If you have a 10-year note, your loan will be paid off in 10 years. You will pay an equal monthly payment which will include principal and interest. If you have a 20-year note, then it will take 20 years to payoff and a 30-year note takes 30 years to payoff. Apply Now for a 30 Year Fixed Rate Mortgage!

What's the advantage to a 30-year term? The main advantage to choosing a 30-year mortgage term is the lower payment. Your interest rate is typically a little higher with a 30 year note. You can compensate however with paying extra principal with each payment to minimize your cost and pay the loan off sooner. Apply Now for a 30 Year Fixed Rate Mortgage!

What's the downside to a 30 year mortgage? The downside to a 30-year mortgage term is the high cost. The compounding of interest over 30 years can equal hundreds of thousands of dollars. Again, you can compensate for this by paying extra principal when you can or by paying bi-monthly mortgage payments. These practices will help you pay the loan off sooner and minimize your interest expense. Compare Multiple Loan Offers - You Choose the Rate! Click Here!

Mortgage Best Practice
Since the differences in interest rates between a 10, 15, 20 and 30 year fixed rate mortgage is minimal, there is another option that gives the borrower the flexibility of a 30-year mortgage payment, while maintaining the ability to payoff the loan in 10-20 years.

Finance your home with a 30 year mortgage, but make payment amounts based on paying the home off in 10 years. For example, when you close the loan, ask your lender to give you amortization schedules for 10, 15, 20 and 30 years. Then make payments based on a 10 year note when you can. If you can keep these payments up, you will payoff your loan in 10 years and save thousands in interest expense. The great news is that if times get tough and you can't afford to make the payment, you have the flexibility of dropping your payment back to the 30 year payment. Lenders allow this practice, although they do not advertise it since they make their money off the interest. Apply Now for a 30 Year Fixed Rate Mortgage!