20-Year Mortgage vs. 30-year Mortgage vs. Adjustable Rate Mortgage

20-Year mortgage vs. 30-year Mortgage vs. Adjustable Rate Mortgage

 

Different mortgage terms and rates can make the loan selection process confusing, especially if you don’t plan on keeping the loan for the full term. A 30-year versus a 20-year fixed rate mortgage offer homebuyers in the Roseville, California and surrounding areas multiple cost saving opportunities.

Many potential homebuyers we talk to don’t initially understand the difference in terms or the type of mortgage they might be eligible for. Our job is to help you make an educated and informed decision.

A 20-year mortgage will allow you to pay off the mortgage in a shorter amount of time, while a 30-year mortgage makes for smaller payments. Some folks like the comfort of having the lower payment, and others want their mortgage paid off faster, even if it means a higher monthly mortgage payment.

Adjustable rate mortgages have a lower rate and payment during the fixed period.  However, when the fixed period ends, this could result in increased payments when the index increases. This can lead to changing payments every month, which makes it quite difficult to budget or know what the payment will be every month. If a payment goes to high, you may need to refinance to a 30-year mortgage to get a lower payment.

Paying a 30-year mortgage off in 20 years could potentially save a homeowner thousands of dollars over the lifetime of the loan.  An adjustable rate mortgage can be quite attractive with the super low payments accompanied by it. However, no one should jump into a 20-year, 30-year, or adjustable loan before figuring out their overall budget and how much of monthly payment they can afford.

The Chris Reese Mortgage Team will help you sort through all of your options and determine whether a 20-year mortgage, 30-year mortgage, or adjustable rate mortgage is right for you.

Contact the Chris Reese Mortgage Team today to discuss your home loan options in Roseville, CA and the surrounding areas at 916-502-1656.

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20-Year Mortgage vs. 30-year Mortgage vs. Adjustable Rate Mortgage