Mortgages

Fixed Rate Mortgage Loans usually have loan terms between 15 and 30 Years. 15- and 30-Year options are the most popular. A Fixed Rate Mortgage may be a good choice if you plan to stay in your home for an extended period and want the “peace of mind” of knowing your interest rate and monthly Principal and Interest Payment will never change during the life of the loan.

If you are looking to build equity more rapidly, a shorter term fixed-rate mortgage might be a good choice. For example, a 15-Year Mortgage fully amortizes over the 15-year period and offers all the advantages of the 30-year loan. Shorter term mortgages also have lower interest rates, and because of the more rapid repayment of principal, you will pay off your home in less time.

One potential drawback is that, with a 15-year loan, you commit to a higher monthly payment. For this reason, many borrowers opt for a 30-year fixed-rate loan and voluntarily make larger payments that will pay off their loan years earlier. This approach is often safer than committing to a regular higher monthly payment.