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40 Year Fixed Mortgage
Rate
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| AAXA is pleased to offer 40 year fixed mortgage
programs to our clients. 40 year mortgage rates tend to be slightly higher than
that of a 30 year fixed, but the monthly payment will be lower due to the
extended term of the loan. This program is a good alternative to borrowers who
do not feel comfortable in an adjustable rate mortgage but want or need the low
monthly payment that this program offers. Customers who pursue the 40 year home
loan are usually looking for one of two things. Either they are searching for a
lower payment so they can afford a more expensive house, or they simply want a
lower payment without the instability of an ARM product. Let’s take a look at a
sample comparison between a
30 Year Fixed Rate Mortgage, a
5 1 adjustable rate mortgage, and a 40 year mortgage. |
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| 40 Year Fixed Mortgage Rate Program
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| $200,000 Loan Amount |
| 6.125% Note Rate |
| $1,118.61 Monthly Principal & Interest Payment |
| Interest Paid Over Life of Loan: $336,930.61 |
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| 30 Year Fixed
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| $200,000 Loan Amount |
| 6.000% Note Rate |
| $1,199.10 Monthly Principal & Interest Payment |
| Interest Paid Over Life of Loan: $231,676.38 |
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| 5/1 ARM
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| $200,000 Loan Amount |
| 5.750% Note Rate |
| $1,167.15 Monthly Principal & Interest Payment
(first 5 years – then adjusts) |
| Interest Paid Over Life of Loan: Will vary with
fluctuation in rate. |
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| As you can see, you will likely drive down your
monthly payment with the 40 year home loan but the amount of interest paid over
the life of the loan could be significantly higher. The big questions that you
need to ask yourself are: “what are you hoping to accomplish with your home
investment and how will your loan program compliment those objectives”. That is
where AAXA comes in. Our loan advisors will take the time to listen to your
goals and help you form a roadmap to get you where you want to be. Give us a
call at 877-RATE-LOW (877-728-3569) or apply using our
online mortgage application. When it comes to finding great 40 year
fixed rates, look no further than AAXA Discount Mortgage.
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Summary: Benefits of a
40 Year Mortgage
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Potential for lower monthly payments than with a 30 year
fixed. |
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Security of fixed rate product. |
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May help borrower afford more expensive home. |
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Fixed monthly payments may simplify budgeting process.
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| Other fixed rate products:
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10 Year Fixed Mortgage Rate
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15 Year Fixed Mortgage Rate
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20 Year Fixed Rate Mortgage
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30 Year Fixed Mortgage Rate
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50
Year Mortgage
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