30 Year Fixed Rate Mortgage
The 30 year fixed rate loan is the most popular choice for first time buyers but the program is an excellent option for all borrowers. Why? First, the inherent stability of a fixed rate provides a sense of financial stability throughout the life of the loan. The rate never changes so the payment stays the same. Variable rate loans can in fact change throughout the life of a loan term and can be unpredictable in later years. But not with a fixed rate loan.
A 30 year fixed rate loan also provides a lower monthly payment compared to a shorter term loan. Fixed rate loan programs can be found in 10, 15, 20, 25 and 30 year terms. The longer the term, the lower the monthly payment. On the other hand, longer terms mean more interest is paid to the lender, even though the monthly payment is lower compared to a shorter term. A 30 year fixed rate increases a buyer’s borrowing power with these lower payments.
The 30 year fixed rate mortgage program provides a range of rate choices and these rates can change daily. That’s why communication between you and your loan officer is so important, to avoid any major rate swings by locking in your rate. Give us a call and let’s talk about your loan options to see if the 30 year fixed rate program is right for you!