Mortgages 20 year
20-year fixed offers on Mike Credit website
A 20-year fixed-rate mortgage is a home loan with an interest rate that doesn't change throughout the entire loan duration. A 20-year fixed may be a good compromise for those who look for lower monthly payments than what a 15-year loan offers but want to pay off the mortgage sooner than with a 30-year mortgage plan.
A general rule for any mortgage is the longer the mortgage term, the higher the interest rate. By opting for a shorter-term loan a borrower may save thousands of dollars in the long prospective. However, a short-term loan would require high monthly payments that not everyone can afford, and it actually can be difficult to qualify for a 10-year or a 15-year loan. Besides, the decision to take a short-term mortgage should be carefully thought out and discussed with a financial advisor in order to make sure that the borrower will be able to meet high monthly payments throughout the life of the loan. So, in case a 15-year fixed mortgage payments are too high for your budget but you still want a lower interest rate and a shorter term than a 30-year mortgage plan, than probably a 20-year fixed is what you need.
Reasons to choose 20-year fixed mortgage
20-year fixed mortgage rates are lower than on a 30-year mortgage but higher than on a 15-year loan, so, in the long run you will pay far less. As in any other loan, during the initial years the major part of your monthly installments will go towards the interest payment, and the least part towards the principal. However, with a 20-year mortgage this ratio will be reversed towards the principle more rapidly than with a 30-year loan. Finally, you will be out of debt 10 years faster then those with a long-term mortgage, which will give you freedom to implement other exciting projects.
To find out the best 20-year fixed mortgage plan, shop for interest rates among multiple mortgage offers selected by Mike Credit from hundreds of lenders on the market. Our mortgage calculator will help you view the latest home loan offers and compare the best deals in just a few seconds.