A Credible Source a Land Loan Adjustable Mortgage Adjustable Rate Mortgage Adjustable Rate Mortgages Advantages Amenities Anatomy Mortgage Apply For a Home Loan Apply For a Loan Online Apply For Loan Online Applying home loan Approval Approval Home Loan ARM Arm Mortgage ARM program Avoidable Mistakes Bad Credit Bad Credit Home Loan Bad Credit Home Loan Lender Bad Home Loans Balloon Mortgages bank Bank Housing Loan Bank of America Bankruptcy Barclays basics Mortgages Benefits of FHA Loans Best California Mortgage Rate Refinance Best Home Loan Best Home Loan Rates Best Mortgage Refinance Calculator Best Place To Refinance Your Home Broker Buying A Home Calculator Amortization Cargo Cash Out Mortgages Cash Real Estate Cash-out Mortgage Refis Cash-Out Refinance Cheapest Rate Home Loan Claim Tax Benefits Closing Closing Cost of Mortgages Closing Costs Attached Closing Costs For a House Company Compare Compare Home Loans Compare Lending Mortgage Compare Loan Control Costs Countrywide Countrywide Home Loans Credit Credit Check Credit Grade Credit Inquiries Credit Profile Credit Recommendations Credit Report credit score Credit Scores Home Loan Current Mortgage Lender Debt Consolidation Debt Consolidation Loans Debt Refinancing default Mortgage Different Types of Home Loans Direct Lenders vs. Brokers Disadvantages Down Payment Elderly Day-Care Services Embrace Home Loans FAQ's Cont'd FAQs Mortgage federal home loan FHA FHA appraisal FHA Home Loan Requirements FHA loan FHA Loans FHA Refinancing Programs Finance Agen financing FIND THE RIGHT LENDER Fixed Home Loan fixed interest rate loan Fixed Rate Mortgage Fixed Rate Mortgages Fixed-Rate Mortgage Fixed-Rate Mortgages For America Express Foreclosure Foreshadow Fort Wayne Home Loan Frequalify Home Loan Future Government Home Refinancing Great Migration Greensboro Home Loan HAMP Hard Money HDFC HELOC Helpful Hints Helpful Information Hme Loan Hom Loan Rate home Home Affordable Loan Home Affordable Refinance Program Rates Home Builders Home Buyer Home Buyers Home Buying Home Equity Home Equity Loans Home Equity Credit Line Home Equity Credit Lines Home Equity Line Home Equity Line Of Credit Tax Home Equity Lines of Credit home equity loan Home Equity Loan Basics Home Equity Loan Interest Home Equity Loan Rate Home Equity Loans Home Equity Loans With Bad Credit Home Equty Loan Home Improvement home loan Home Loan Application Home Loan Calculator Amortization Home Loan Eligibility Calculator Home Loan For Bad Credit Home Loan Improvement Home Loan Interest Rate Home Loan Investment Bank Home Loan Lines Of Credit Home Loan Modificatio Home Loan Modification Home Loan Modification Plan Home Loan Modification Programs Home Loan Mortgage Generic Home Loan Now home loan Online Home Loan Process Home Loan Programs Home Loan Rates Home Loan Repayment home loans Home loans mortgage generic Home Mortgage Refinance Home Mortgage Refinance Options Home Mortgages Home Owner Home Prices Home Purchase Home Refinancing Homeowners Homeowners Refinance Homes For Sale House Loan For Mortgage Housing Housing Collapse Housing Counseling Housing Finance Agency How To Shop Low Rates IBISWorld Increasing Indian Bank Home Loan Influence Your Home Advantage Loan Cost insurance Interest Rate Interest Rates International Investing Requirements Investment Property Loan IRS Jumbo Loans Lawyer Lender Mortgage Private Lending Level Limit Limited Cash Out Mortgage lines of credit loan Loan Application Loan Calculator Loan Comparison Loan For Home Loan Modification Loan Process Loan Zone Loans Low Down Payment LowEnd Manufactured Home Loans Master Mistakes Mobile Home Loan Modification Modification Program Modification Program Process Morgage Mortgage Mortgage Application Mortgage Basics Mortgage Broker Mortgage Calculator Refinance Mortgage Calculator Refinance Breakeven Mortgage Calculators Mortgage Closing Statement Mortgage Companies mortgage compare interest rate Mortgage Financing Mortgage Insurance Mortgage Interest Rates mortgage lenders mortgage lending mortgage loan Mortgage Loan Debt Mortgage Loan Process Mortgage Loan Programs Mortgage Loan Programs Cont'd Mortgage Loan Refinance Mortgage Loan Refinances Mortgage Programs Mortgage Rates Mortgage Rates Refinance Mortgage Refinance Mortgage refinance home Mortgage Refinance Loan Mortgage Trends Mortgage Types Mortgages Mortgages Loan Mortgages Programs Moving Moving Tips Named Nationwide Personal Home Loans Negotiating No Credit Check Mortgage Loan No upfront Fee Online Loan Shopping Online Loan Shopping Tips Overcoming Partner Payment Payment Ease Program Personal Loans Physician Home Loan Pre-qualifying Price Property Appraisal Property Taxes Purchase A Residential Home Quick Rate Quotes Real Estate Real Estate Settlement Procedures Act Refi Refinance refinance home - refinance mortgage Refinance Home Loan Quotes refinance mortgage Refinance Mortgage Hurdles Refinance Mortgage Interest Rates Refinance Your Mortgage Online Refinancing Refinancing Equity Loans Refinancing Mobile Home Refinancing Mortgage Requirements RESPA Restructure Reverse Mortgage Rules Saving Money on Your Mortgage Scandal Second Home Owner secured loan Securing A Home Improvement Loan Sierra Home Loan Slowdown standards Success Take Over KPR 2018 Tax Benefits Tax Deductible Tax Law tighten Tips type of application fee Types UK Home Loans Unsecured USDA Home Loan VA home loan VA Home Loan Program VA Loan VA loan pre-approval VA mortgage checklist VA Mortgage Loan VA Streamline Loans Values Variable Home Loan Wells Fargo Wells Fargo Home Loan Modification Wells Fargo Home Loan Modification Tips World Bank Zero Balance Program

2. Mortgage Basics - Fixed-Rate Mortgages

2. Fixed-Rate Mortgages

A fixed mortgage rate has a fixed interest rate for the entire length of the loan, which is typically 15 or 30 years. With a fixed-rate mortgage, the interest rate on the loan remains the same and the amount of the monthly mortgage payment does not change. One advantage of this is that you will always know what your monthly payment will be, making it easier to budget your finances for the long-term. However, some important drawbacks to consider when deciding on a fixed-rate mortgage are:


  •  The interest rate is often higher than that of a adjustable-rate mortgage.
  • Fixed-rate mortgages are not assumable, which means you cannot transfer your existing mortgage to a new buyer if you sell your home.
  • Some fixed-rate mortgages have prepayment penalties.

30 year versus 15 year fixed rate mortgage:

Once you decide you want a fixed-rate mortgage, the next decision is whether you will want a 30 year or a 15 year loan:

  • The main advantage of a 30 year mortgage is that the monthly payments will be lower because you have a longer period to repay it. This translates into more payments, and considerably more money paid in interest than with a shorter-term mortgage loan. However, lower monthly payments can free up more of your monthly income which can potentially be put to more productive uses, such as a retirement fund or other investment securities. Another advantage in taking a 30 year mortgage is that the interest is tax deductible, which will reduce after-tax cost. In addition, you retain the option of paying off your mortgage faster in the future if you so desire so long as you do not have a prepayment penalty.

  • With a 15 year mortgage, the main advantage is the large sum of money you will be saving on interest when compared to a 30 year mortgage. In general, the shorter the term of the loan, the lower the interest rate will be, therefore you may also be able to get a lower interest rate, which can vary between one-quarter and one-half percent lower than a 30 year mortgage. However, because the loan is for a shorter term, the monthly payments will be larger, and the tax deduction will be smaller because a smaller portion of your monthly payment is going towards interest. You also risk defaulting on your mortgage payments if you find yourself experiencing financial hardships.

Example
Lets take a $150,000 mortgage and compare how much you would pay on a 30 year fixed-rate mortgage with an interest rate of 6.84 percent versus one for 15 years at 6.10 percent. On the 30 year loan, your monthly payment will be $961 versus $1,274 for the 15 year loan. However, you will pay a total of $196,304 in interest for the 30 year loan, versus only $79,304 for the 15 year loan - a savings of $117,001!                                        

Refinance Home Loan Mortgage Offers The Lowest Interest Rates, Home Loans And Refinancing. Mortgage And Home Loan Advisors Consult Home Owners And Home Buyers And The Financing Solution Best Suited to The Mortgage, Home Loan And Refinance Needs.

Posting Komentar

[blogger][facebook]

Author Name

Formulir Kontak

Nama

Email *

Pesan *

Diberdayakan oleh Blogger.