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Home Purchases
Refinancing
Home Equity Loans
Loan Types:
-Bad
Credit Mortgages
-Interest-Only
-Fixed Rates
-Adjustable Rates
--Traditional ARMs
--Option ARMs
-Conforming Mortgages: Fannie Mae/Freddie Mac
-Non-Conforming
-Piggy-back Financing
-Jumbo Loans
-Bridge Loans
-125%
Equity Loans
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FIXED RATE MORTGAGES
The most common type of home loans offered by mortgage companies
are fixed rate mortgages. Usual loan term for these type of loans are
either 15 or 30 years. Mortgage interest rates are established at the
time the mortgage is acquired (locking-in), and remain the same for
the entire duration of the loan.
30-Year Fixed Rate Mortgage Loan
Thirty year
home
purchase loans are the industry standard. Payments are
distributed over so many years, resulting in monthly payments that
are significantly lower than payments for a short-term loan.
When utilizing a 30-year fixed mortgage loan, you will wind up paying
much more in interest compared to a loan that is shorter in term.
But, mortgage interest rates for fixed loans are 100%
tax deductible!
15-Year Fixed Rate Mortgage Loan
The popularity of 15-year mortgages is on the rise. These loans
will allow you to save money in interest compared to a 30-year loan,
but will mean your monthly payments are going to be higher. Your tax
deduction is also going to be smaller since you are paying less
interest.
Interest rates associated with a 15-year mortgage are usually 1/4 -
1/2% lower than a 30-year mortgage. Typically, the shorter the loan
term, the lower the interest rate is going to be. The main benefit of
a 15-year loan is that money you save in interest during the loan.
Mortgage Calculator
To determine what you can expect to pay for your monthly
mortgage, try our
mortgage payment calculator.
An example...
Suppose you have a $100,000 mortgage. The difference in interest
you will end up paying with a 15 and 30-year loans respectively is
detailed in the table below.
| Loan term
|
Interest Rate |
Monthly Payment |
Total Interest |
|
30 years |
8.00% |
$699 |
$164,155 |
|
15 years |
7.75% |
$941 |
$69,429 |
You should learn about the
bridge loans we offer if you are an existing homeowner in the
market for a new home. Bridge loans help minimize the difference
between your first home loan and your new mortgage.
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