There are many types of home loans, although fixed-rate mortgages remain the most popular option for homebuyers. Most fixed loans have a 15-year to 30-year term. Also known as conventional loans, fixed-rate mortgages have been around longer than any other loan option.
Each mortgage payment will be equal to your interest rate times the principal on your loan, plus a percentage of principal. At the beginning of your mortgage, most of your mortgage payments will go toward interest, while most payments will go toward principal toward the end.
You will need to choose between a 15-year and a 30-year fixed-rate mortgage, each with advantages and drawbacks.
A 30-year mortgage allows you to borrow money for the long term without risking higher interest rates or changing payments. Your payments will be lower than a 15-year mortgage, and your interest payments will be higher, so you can deduct more interest on your taxes. You will build equity slower than with a shorter-term loan, however, and you will pay more in interest. The interest rate will also be higher.
A 15-year loan will allow you to build equity faster with a lower interest rate and less in interest charges. The monthly mortgage payment will be higher, however.
While mortgage rates remain at historic lows, it typically makes sense to choose a fixed mortgage. Fixed-rate mortgages are usually the better deal when rates are low, even if you only stay in your home for a short time. This is especially true if you want the security of the same payment and interest rate, and you are willing to pay more in interest.
You can use a mortgage calculator to compare the costs of a fixed versus an adjustable-rate mortgage to decide which makes more sense for you.
Mortgage Investors Group, based in Tennessee, offers residential financing in a number of states in the southeast, See MIG Service Areas. Terms and conditions to apply to home financing. We want to share with you the loan terms vary based on several characteristics and your financial profile. These include but are not limited to loan program, loan purpose, occupancy, credit history, credit score, assets, and other criteria per loan type. The repayment terms and interest rate may vary from time to time. The terms represented here are based on certain assumptions outlined below and/or noted on the loan outline page. Additional details concerning privacy, program disclosures, licensing specifics may be found at migonline.com Legal Information.MIG Loan Officers will help gather the information needed for an individual assessment to provide home financing which matches the loan characteristics with your home financing needs based on your financial profile, when you are ready to begin a full loan application. For estimates and general information before that step, the basis for which the mortgage financing information are as follows:
An MIG Loan Officer is available to help with your financial details to determine which characteristics apply to your situation for a personalized look into which loan program best fits your home financing needs. Please use the Find a Loan Officer link or reach out to Mortgage Investors Group at 800-489-8910. Equal Housing Lender 1.2020