Why Should I get a 30-Year Fixed Rate Loan?

Why Should I Choose a 30-Year Fixed Rate Mortgage Loan?

If you are considering a home loan purchase in Roseville, California or the surrounding areas, you might want to consider a 30-year fixed rate mortgage loan.

A 30-year fixed rate home loan is issued for the purpose of buying a home. Its interest rate and monthly payment are fixed and will not change over the course of the loan. It’s a very attractive loan to many homebuyers due to the length of term and fixed interest rate.

But is it the right loan for you?

30-year fixed rate loans are a long-term loan with a fixed rate that spans the length of the mortgage. It allows for consistency and is often considered a budget-friendly way for homebuyers to calculate their mortgage expense for years to come.

30-year fixed rate loans are also popular because they typically offer one of the lowest monthly payment options. One of the best reasons to choose a 30-year fixed rate mortgage is the opportunity to pay the mortgage on schedule or pay the loan off early. For example, paying $150 extra every month, (towards the principal), will shave about 6 to 7 years off of a mortgage. There is no penalty in paying off a fixed rate loan early.

Another option to paying a loan down early is to use the biweekly program, which allows the borrower to make one extra mortgage payment yearly. This saves a borrower 8 full years of payments.

As you can see, a 30 year fixed rate mortgage offers flexibility and security. A borrower is secure in knowing their principal and interest monthly payment amount will remain the same (homeowners insurance and property taxes are subject to change), but they also know they can pay back their loan early if they choose to do so.

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

Why Should I get a 30-Year Fixed Rate Loan?