Although you may already have a mortgage and have purchased a house, you might not be familiar with the payment terms or other loan options available to home-buyers. Based on the history mortgages, these are the most popular types of loans.
30-Year Fixed Mortgage
The most popular type of home loan is the 30-year fixed mortgage. This type of loan is used to finance more than 75% of all home purchases. When you take out a loan, the interest rate you receive will remain the same for the next thirty years. These loans work best when interest rates are low or rising, as it is impossible to predict what they will go. These loans are the best option for those who need a predictable monthly payment and intend to stay in their home for a long time (e.g., 5 to 7 years). This plan will allow you to pay less monthly and earn more interest over the life of the loan.
15-Year Fixed Mortgage
The 15-year fixed mortgage is the same as the 30-year fixed mortgage, but the loan will be paid off in half the time, and you’ll …