Fixed rate loans are mortgages with a set interest rate and payments for the entire length of the loan. The only monthly costs that may increase over time are your property taxes and homeowners’ insurance. Generally, a fixed rate loan allows you to pay down the principal balance before the maturity date without any extra charges.
“I love 15 year mortgage rates and want to show you how much interest you’ll save compared to that 30 year mortgage loan.” -Nate, licensed LO. There is flexibility in selecting a 10, 15, 20, 25 or 30 year mortgage term. For example, a 10 year loan will have higher monthly payments than a 30 year. Check out our Blog here.
A fixed rate mortgage is perfect for those who can afford the interest rate and plan to stay in the home for a long time. The amount of interest that you will pay with a fixed rate loan varies based on how long the loan is amortized. This is the length of time in which the payments are made.
15 vs 30 year mortgage rates: because the term is half as long, a borrower pays less interest over the life of the loan. This also means the payment will be higher than with a 30 year mortgage.
Once the rate is locked, your interest rate does not fluctuate with market conditions. Borrowers who want predictability or plan to keep property for a long time will prefer fixed rate mortgages.
The FHA loan has low 30 year mortgage rates, great for first time home buyers or borrowers with credit challenges.
FHA serves as an umbrella under which lenders have confidence to write loans for borrowers who may not meet conventional loan requirements, FHA’s mortgage insurance assists individuals to qualify, even if they were previously denied for a conventional home loan.
The FHA loan helps those who would like to buy a house but don’t have money for the down payment or closing costs. It also helps those with credit issues, even bankruptcy or foreclosure.
The most popular FHA home loan is the 203(b). This home loan often works well for first time home buying as it allows borrowers to finance up to 96.5%of their home loan, keeping closing costs at a minimum.
The FHA 203(b) home loan is one of the only loans in which 100% of the closing costs can be a gift from a relative, non-profit, or government agency. FHA will collect annual MIP, Mortgage Insurance Premiums.
Conventional fixed rate mortgages are widely available, usually with lower rates and costs than the FHA loan. 30 year mortgages are generally selected for their lower monthly payments. 15 year mortgages significantly reduce the interest paid over the life of the loan.
20 year mortgages are a middle ground between monthly payments and low interest. 10 year mortgages are for those with budget flexibility who want to pay their loan off rapidly. What are 30 year mortgage rates today?
Adjustable Rate Mortgages have a fixed rate period in the beginning, like 5, 7 or 10 years, followed by adjusting rates according to the preset caps. What is the rate for mortgage today? Try our free homeloan mortgagecalculator here.
What are the current mortgage rates? Are you first time home buying? Get in touch!
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