Fixed rate mortgages are available with various length terms. The most popular are 15-year and 30-year, but they are also available with 10-year, 40-year and 50-year terms. But not all loans are suitable for all people. For example, a 50-year mortgage is not necessarily a wise choice for an older person or couple, and a 10-year mortgage is not always an affordable option for a person who is 20 years old.
Following are some facts about fixed rate 10-year, 15-year, 30-year, 40-year and 50-year mortgages:
10-Year Fixed Rate Mortgages: With a fixed rate 10-year mortgage, the monthly payments will be significantly higher than the monthly payments required with a 30-year, 40-year or 50-year mortgage. However, a mortgage that will be paid in full in 10 years is an excellent option for individuals or couples who can afford the payments and who want to own their home outright in just 10 years. The most significant benefit of a 10-year mortgage is that it can be paid relatively quickly and it doesn’t drag on for two or three decades. However, this type of mortgage is often difficult for many homeowners to afford.
15-Year Fixed Rate Mortgages: With a fixed rate 15-year mortgage, the payments will be lower than the payments required by a 10-year mortgage, but higher than the payments required on a longer term mortgage. Many people or couples that opt for a 15-year mortgage have higher incomes and can afford higher monthly payments.
30-Year Fixed Rate Mortgages: Most individuals and/or couples opt for a 30-year fixed rate mortgage because the payments are spread over three decades, which makes this type of loan affordable. Many people who refinance their mortgage or purchase a new home will opt for a 30-year fixed rate mortgage even if they don’t believe they will live in or own the home for 30 years.
40-Year Fixed Rate Mortgages: Although not as popular as a 15-year or 30-year fixed rate mortgage, a 40-year mortgage is a good option for individuals or couples who are young and not able to afford the payments that are offered with a 30-year mortgage. Sometimes, the interest rate on a 40-year fixed rate mortgage is higher than on a mortgage with shorter terms, but the monthly payments are lower – which can make it more affordable.
50-Year Fixed Rate Mortgages: It’s not common for individuals and/or couples to opt for 50-year mortgages, but that doesn’t mean this type of mortgage is never selected. 50-year mortgages are often chosen by people who would otherwise not be able to purchase a home.
When it comes to fixed-rate mortgages, there are many options. For more information on how to determine which choice is right for you, give The Home Loan Arranger a call today at 1-877-938-7501. There are several choices – and one is sure to meet your criteria and provide you with a monthly payment requirement that you can afford.