Fixed Rate Mortgages For Home Buyers

Fixed rate mortgages are the most popular mortgage loans available today, in Southern California as around the country. This is because unlike most loans, Lowest Peer To Peer Lending Rates a fixed rate mortgage will have an interest rate that will stay the same all throughout the term of the loan, regardless of what happens to the market.
So if a borrower is given a 5% interest rate by a lender for a 30 year fixed rate mortgage, the borrower will pay 5%, even if the market rate rises or falls over the course Financial Consultant Vs Financial Analyst of the 30 year period. Borrowers will never have a chance to pay less if the market rate goes down, but they will never pay more as well, should the market rate rise.
What this does for borrowers is to give them an easier time in planning for their budget. And with 10, 15, and 30, even 20 and 40 year term options, it also gives borrowers flexibility.
But what is the difference between 10, 15, and 30 year terms?
Generally, the difference is the shorter the term, the lower the interest rate, but the higher the monthly pay will be. For people who will take 10-year fixed rate mortgage terms, they will be given smaller interest rates as a reward for aggressively paying for their loan by paying more per month. This is ideal for people who wish to secure their homes much faster, or who wish to see more of their paid money go to the principal rather than pay for the interest.
It is the exact opposite for longer terms. For example, as I write this article, the average 30 year fixed mortgage rates is around 4.6%, which is higher than the average interest of 15 year term, which is 4%. However, because the loan is divided by more months, monthly payments will be much lower.

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