Fixed Rate Home Loan Chandler, AZ: Keep Your Interest Rate Steady

Fixed rate mortgages have several advantages, including long term stability. When you lock in your loan term, that’s it; you won’t be startled again. If you want to maintain the loan for more than seven years, a fixed rate loan with a 15-year mortgage is generally the best option, as it will keep your payment consistent, allowing you to better organize your finances.

While fixed rate mortgages are quite popular, they are not the only option in Chandler. Adjustable rates are frequently advantageous to homeowners, particularly if they do not intend to stay in their house for an extended period of time, rendering a 30-year mortgage obsolete. If you believe you will be in the property for a shorter period of time, an adjustable rate loan can typically save you money in the short term, making it an ideal purchase loan.

Many Chandler homeowners are torn between a 15-year and a 30-year mortgage. Our loan specialists can take you through the benefits and drawbacks of each, allowing you to make the best choice for your future. A 15-year mortgage requires a greater down payment, but you will pay less interest throughout the life of the loan. A 30-year mortgage is suitable for purchasers with fewer upfront resources since the down payment and loan terms are more manageable. However, you will pay extra throughout the life of the loan, and how much depends on your unique scenario.

It is legal in the United States to pay off your fixed rate mortgage early. This will allow you to pay it off more quickly and save money on interest. When you pay extra on a fixed rate loan, the extra money you spend each month is applied to the principle of the loan. The principle is the amount of money you still owe on the loan.

Aside from paying more on principle each month, as previously noted, there are other strategies to pay off a fixed rate loan sooner. The most common method is biweekly mortgage payments. After the loan is closed, your lender’s servicer can set this up. It works like this: instead of paying your mortgage once a month, you pay half every two weeks. You’ll make 26 half-payments or 13 full payments because there are 52 weeks in a year. That extra full payment collected each year goes solely to the principle and can reduce the term of your loan by 5 to 7 years.