Fixed Rate Mortgage Loan Types For Real Estate Buyers
With a fixed rate mortgage loan the interest percentage rate remains constant throughout the entire life of the loan and is the most common in home purchases. As a Real Estate Buyer, this should be one of the first types of loans to research and find out if it works best for your purchase.
30 Year Fixed Rate Mortgage Loan
The main benefit is that since the monthly percentage rates do not change, the monthly payments will not either so as a homeowner you will not have to contend with a varying loan payment amount that fluctuates with the movement of interest rates. Depending on the down payment, the borrower can budget accordingly and spread a lower monthly payment over the 30 year life term of the loan.
15 Year Fixed Rate Mortgage Loan
The main benefit for a 15 Year Fixed Rate Mortgage is even though the monthly percentage rates still do not change and neither will the monthly payments, the buyer will pay off the loan faster. Also, with a 15 year life term, each payment every month will be a higher amount when compared to a 30 year fixed.