30 Year Fixed Mortgages
When you decide to buy a home. When you learn you’re creditworthy enough. And when you go to bank to discuss loan types, the 30 year fixed rate mortgage will be the first loan you’ll consider. These loans are probably the most popular homeowner’s loan and for good reason. They offer many advantages.
30 Year Fixed Rate Mortgages – Advantages
Following are some of the advantages of this loan:
- You can borrow money on a long term basis without having to worry about the interest rates or payments ever changing
- The monthly payments are lower (than the other popular fixed rate loan- the 15 year loan) because the life of the loan is 30 years
- The lower payment may allow you to put some of the money that may have paid for your home in to higher yielding investments
- The higher interest payments increases the amount that can be deducted at tax time, reducing or eliminating tax owed
30 Year Fixed Rate Mortgages- Disadvantages
Some of the disadvantages of this loan are:
- The interest rates are higher than a 15 year loan
- Over the total loan period, the borrower of a 30 year loan will pay out much more in interest than a shorter term loan
- Since the interest payments are so high, equity gets built at a very slow pace
These loans are available at all banks, You can also get a quick quote online to see what your interest and principal will be by the amount you want to borrow.
Below are some government websites that have more information on home loans that might be useful.
- http://www.usa.gov/Citizen/Topics/Family/Homeowners.shtml#vgn-buying-and-financing-vgn
- http://www.usa.gov/shopping/realestate/mortgages/mortgages.shtml
- http://www.hud.gov/
Steve Wyrostek -HomeLoans.org Expert A 20 year plus veteran of the insurance industry, Steve managed departments in the personal and commercial lines areas of major insurers. He’s familiar with how insurance—ranging from boat to workers compensation—works.
