With fixed rate mortgage (FRM) loans the interest rate and
your mortgage monthly payments remain fixed for the period
of the loan. Fixed-rate mortgages are available for varying
years typically between 10 to 40. Generally, the shorter the
term of a loan, the lower the interest rate.
The most popular mortgage terms are 30 and 15 years. With
the traditional 3O-year fixed rate mortgage your monthly payments
are lower than they would be on a shorter term loan. But if
you can afford higher monthly payments a 15-year fixed-rate
mortgage allows you to repay your loan faster and save a lot
on your total interest payments.
The payments on fixed rate fully amortizing loans are calculated
so that at the end of the term the mortgage loan is paid in
full. During the early amortization period, a large percentage
of the monthly payment is used for paying the interest. As
the loan is paid down, more of the monthly payment is applied
to principal. You can also choose to pay the loan off bi-weekly
instead of the normal once a month payment. With bi-weeklv
mortgage plan you pay half of the monthly mortgage payment
every 2 weeks. lt allows you to repay a loan much faster because
you are technically making 13 total payments per year versus
12 payments a year.
ARTESIA,
CA (800) 808-FUND (3863) Broker License No. :01138383.
KINGMAN,
AZ (866) 978-FUND (3863) Broker
License No. :MB-0908949.
LAS
VEGAS, NV (702) 889-9005 Broker
License No. :468.
