Maximize your home purchase budget and enjoy lower monthly payments with a fixed, competitive interest rate. Historically, the 30-year fixed loan is the mortgage industry's most popular type of loan. It's known for its repayment term of 30 years, with affordable payments spread out equally over that timeframe. Best of all, your interest rate is locked when the loan is finalized.
30-Year Mortgage has proved popular with the following
Homebuyers planning to stay in their home at least 5-7 years.
Homebuyers interested in buying more house for their money. Its lower payments allow borrowers to take out a larger loan because it's easier to afford the payback over a longer term.
Of course, you don't need to fall into either category to appreciate the savings this mortgage provides homebuyers. Check out the advantages below and what you need to know when considering your options.
Competitive interest rates
Low monthly payments
A fixed rate, so no surprises over the life of the loan
Down payment options as low as 5%
What you need to know
This is by far the most popular loan option in the industry. It's safe. Yet, there's more time for interest to accrue. However, if you offer less than a 20% down payment, expect to pay private mortgage insurance (PMI) until you've reached 78% loan to value (LTV). Keep in mind that PMI is often less expensive than the monthly mortgage insurance that accompanies an FHA loan.
Understanding the way your mortgage amortizes is a great way to know which loan option is best for you. Get your questions answered and find a custom loan that makes sense for your financial goals. It just takes one call to American Financing.