|
Some of the advantages that fixed-rate mortgages
offer are:
|
• Stability.
With a fixed interest rate, you know exactly what you'll
pay each month for the life of the loan. You don't have
to worry about rates going up or down.
• Lower monthly payments.
In general, the longer the term is the less your monthly
payment is. For that same reason, qualifying for a longer-term
loan can often be easier than for a shorter-term loan
— you don't need as much income. Choosing a longer-term
loan may allow you to afford a more expensive home.
|
Fixed-rate mortgages most commonly come
in terms of 15, 20 and 30 years.
A term of 15 years instead of 30 years can mean higher
monthly payments. But it also means you'll pay off your
mortgage sooner and build equity in your home faster.
|