123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Business >> View Article

How To Pick The Best Fixed Rate Home Loan

Profile Picture
By Author: Scott F. Staudt
Total Articles: 91
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

An FRM (fixed rate mortgage) may have a term as short as ten or as long as forty years. The longer the term, the lower the mortgage payments will be, but the negative side is that the borrower will be paying for a long time. The best solution for most borrowers is to find the FRM that combines affordable monthly payments with the shortest term possible.

The longer term FRMs cost a lot more over the course of the life of the mortgage. A FRM of just ten years can carry monthly payments that are up to twice as high as those of a 40 year loan.

Another concern is that, now that the bank has a longer period of risk, it will charge a higher rate for this longer term mortgage.

For these reasons, the 15 and 30 year mortgages are the ones that are the most popular among home buyers, with 15 years carrying the lowest rates and 30 years the highest. Needless to say, forty year mortgages will have the highest interest of all.

Most people, therefore, find that the fifteen year term fixed rate loan carries the best combination of affordability and low interest rate.

Once your mortgage broker has calculated ...
... the amount of monthly payment you can expect to pay on a fifteen year home loan, you can then decide if this is what you can afford. Once you look at one term, and determine that the payments are too high, you can look at longer terms until you find the right balance.

Even with a longer term mortgages, be aware that you have the option to pay your loan down sooner. This is often a solution to a homebuyer who can only afford "x" today, but as his salary increases, can afford to pay more. Making additional payments on the principal will effectively lower the total term of the loan in any case.

A quick call to a mortgage broker, or a perusal of the internet will permit a potential borrower to ascertain the payments required on each term of a mortgage at different rates. The internet is a good source, but many people find it easier to just work with a mortgage consultant to do these calculations.

In any case, the goal is to find the FRM that will yield you the monthly loan payment you can afford while keeping the term of the loan as low as possible.
Free information for pret hypothecaire also check taux hypothecaire

Total Views: 306Word Count: 417See All articles From Author

Add Comment

Business Articles

1. Most Expensive Places To Live In Dubai 2025: Top 14 Luxury Areas
Author: luxury Spaces

2. Lucintel Forecasts The Phototherapy Lamp Market In Germany To Reach $1 Billion By 2031
Author: Lucintel LLC

3. Lucintel Forecasts The Percussion Instrument Market In United States To Reach $2 Billion By 2031
Author: Lucintel LLC

4. Lucintel Forecasts The Percussion Instrument Market In Japan To Reach $2 Billion By 2031
Author: Lucintel LLC

5. Gojek Clone App Script – A Complete Guide For Startups & Enterprises
Author: Swiza Joy

6. Lucintel Forecasts The Percussion Instrument Market In Germany To Reach $2 Billion By 2031
Author: Lucintel LLC

7. Web Design In The Age Of Ai: Opportunities And Challenges For Digital Marketers
Author: Vikram kumar

8. Lucintel Forecasts The Lung Cancer Surgery Market In United States To Reach $6 Billion By 2031
Author: Lucintel LLC

9. Salary Loans For Salaried Employees
Author: salarytopup

10. How Performance Testing Services Boost Software Quality
Author: Arnav Goyal

11. Byst: The Power Of Strong Business Mentors For Entrepreneurial Growth
Author: Byst Youth

12. How Iso 27001 Auditor Training Prepares Individuals For Internal Audits
Author: Jane

13. How To Sell My House Fast In Kentucky: A Homeowner's Guide?
Author: Adams Kirsten

14. Attractions And Living: Homes For Sale In Lexington, Ky
Author: Adams Kirsten

15. Trusted Old Coin Buyer: How To Sell Your Old Coins Safely In India
Author: surbhi

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: