30 Years of Certainty

Thirty years can sound like a lifetime when you're talking with your 

lender about getting a 30–year fixed–rate mortgage.

There are so many uncertainties in life and who knows where you'll be in 30 years. Will you switch careers? Will you move cities? Will you have children?

 Your monthly mortgage payment and interest rate will remain the same as the day you locked in your loan -- guaranteed. 

It may be a long period of time with many unknowns, but a 30–year mortgage provides you with many certainties:

• Lower monthly payments. Because your loan is stretched out over a 30–year term, you have more time to repay your loan, making your monthly payments more affordable and sustainable.
• Inflation protection.  In 30 years, virtually everything around you will cost twice as much as it does today, assuming a 2% inflation rate. Yet, your monthly mortgage payment (minus taxes and insurance) and interest rate will remain the same as the day you locked in your loan — guaranteed. This provides your family with a level of security and predictability that's hard to find in today's world.
• Flexibility. You can choose to pay–off your loan faster by adding to your monthly payments — without penalty in most cases.
• Easier to Qualify. With the more affordable monthly payments that come with the longer term, you may qualify more easily than loans with smaller terms.

For the fourth consecutive week, mortgage rates continued to climb as home buyers face higher borrowing costs.

“Mortgage rates are drifting upwards again and represent continued affordability challenges for prospective buyers—especially first-time buyers,” says Sam Khater, Freddie Mac’s chief economist.

30-Year Mortgage Rates Reach Highest Level Since May

With all the benefits that come with a 30–year fixed–rate mortgage, there are important considerations to keep in mind.

• You'll likely have a higher interest rate as the bank is taking a risk by locking you in at today's rates for three decades.
• Because of the longer term and higher rate, it will take you longer to build up equity and you'll pay more in interest over the life of the loan.  
• Your interest rate won't change if rates go down. Your rate is locked in and will remain the same for the duration of your term.

To ensure that you obtain the mortgage that's right for you, it's important that you talk with your lender. 

We realize the decision to Sell or Buy is a personal one that depends on your financial situation, future plans and lifestyle. When you’re working with real estate professional Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice.  CALL 801-809-9866 today. 

   

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