Whether you have found your “home of homes” or you think you’ll be in your home for a while, getting a 30-year fixed-rate mortgage can bring with it a number of benefits. These benefits aren’t limited to those long-timers either, some people who are planning to sell or refinance in the near-future may benefit from it as well.
Affordability
Long-term spells out affordability with mortgages. Since it is amortized over those 30 years you will inevitably be paying less when compared with the 5 year loans. As you spread your payments out, it will take longer to pay off your home loan but to be honest, most Americans don’t plan to own their home for 30 plus years anyways and it helps to have money on hand rather than stressing on the monthly payments. This is an overall affordable option for most individuals and families.
Fixed Rate
That means a lot especially when we are talking about our unpredictable markets and government trends. Most people choose the 30 year fixed mortgage in order to alleviate some of this risk and volatility in the market place. With a little bit of foresight you can lock yourself in at a great time. You just want to make sure that you get in before interest rates start hiking.
Long-Term stability
This option can give you the time you need to be able to slowly build equity. For many families it is financially stable and gives them the time they need in order to lay out a sustainable plan. Whatever your financial goals may be, getting into a 30 year fixed-rate mortgage can be a great option. This is especially true when the interest is down and expected to start going up.
With proper planning and financial understanding you can meet your goal of owning your own home sooner than you think.
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