20 Year Fixed Mortgages
If
you are not sure that you can afford the payments
of a 15 year fixed mortgage or you do not want to
stretch your loan out to a 30 year fixed or 40 year
fixed rate product, then a 20 year mortgage program
might be right for you. 20 year home loan programs
have become increasingly more popular in recent years
by providing a happy medium between long term and
short term fixed rate products. Typically, the
rates for these loans fall somewhere between their
15 year mortgage and 30 year fixed counterparts.
Let's take a look at a sample scenario of how a
20 year fixed rate mortgage may stack up against other
fixed programs - Sample Fixed Rate Mortgage Loan Criteria:
20 Year
5.75% Mortgage Rate
$125,000 Loan
Monthly principal and interest payment: $877.60
Total Interest Paid over life of loan: $85,625.05
30 Year
$125,000 Loan
5.875% Mortgage Rate
Monthly principal and interest payment: $739.82
Total Interest Paid over life of loan: $141,335.81
15 Year
$125,000
5.625% Mortgage Rate
Monthly principal and interest payment: $1030.00
Total Interest Paid over life of loan: $60,399.61
With the 20 year home loan, you shave off some of
your monthly payment compared to the 15 year fixed.
Plus, you save tens of thousands of dollars in interest
by shortening the term of the loan from a 30 year
program. Note: This is only a rough sample for educational
purposes. Always be sure to review APR and closing
costs when choosing a provider and program.
Request 20 year mortgage rates (options):
1. Call the lenders and broker in the survey for quotes.
2. Visit the various companies' web sites for more
details.
Shopping for competitive Pricing on ForTheBestRate.com
When it comes to some of the best 20 year fixed rates
on the market, start your research at ForTheBestRate.com.
The companies listed in the survey diplay their low
rates for a wide variety of financing options. Give
them today for a consultation. You can also get started
by visiting their web sites for more information.
Other fixed rate products:
