A Brief Comparison between Different Types of Fixed Mortgage Lengths

The interest rate on a fixed rate mortgage stays the same throughout the entire term of the loan. There are several numbers of popular mortgage loans nowadays: 50 year fixed rate, 40 year fixed rate, 30 year fixed rate, 15 year fixed rate and even 10 year fixed rate. Each mortgage length is highly suggested depending on how long you’d like to pay for your mortgage.

10 Year Fixed Mortgage

A 10- year fixed mortgage’s interest rate will not change within the 10 year period of your mortgage. It also has a rather high monthly of all the other 4 fixed mortgage length. However, completing your mortgage plan in a short as 10 years can save you money in the long run. A 10 year fixed rate mortgage is suited for those who have a high income capable to pay off the home in 10 years or less.

15 Year Fixed Rate Mortgage

A 15- year fixed mortgage allows the buyer to pay off the loan in a 15 year period. Although the monthly payment is a little higher than a 30-year mortgage, its interest is a little lower than the other three remaining mortgage length. It also gives the owners the opportunity to pay off their mortgage quicker. Lenders usually offer this to potential home buyers because of its lower interest rate. This type of fixed mortgage length is also suited for homeowners who are financially established and who would like to have a home.

30 Year Fixed Rate Mortgage

30- year fixed rate mortgage is the most popular mortgage length that buyers choose from. It gives the homeowners 30 years to pay off their mortgage. The 30- year fixed mortgage plan fits most home buyer’s budget more than any other mortgage length plan.

40 Year Fixed Rate Mortgage

40- year fixed mortgage plan has a higher mortgage rate than the 30- year fixed mortgage, although its monthly payment is lower because of its length. Homeowners can allot the extra money for ot0her expenses because of its very low monthly payment if compared to others.

50 Year Fixed Rate Mortgage

50- year fixed mortgage plan is probably the longest mortgage rate plan in the market today. This is very ideal for people who has a low monthly income and also likes to have a home of their own especially in cities like Gatlinburg. Although you can save extra money because of its very low mortgage payment, it can be a bit strenuous for the buyers in the long run because of its length. It would be better for people who would choose this mortgage length plan to pay a little extra every once in a while so that they can finish their home loan much earlier than expected.