tHE 30-YEAR FIXED MORTGAGE
MORTGAGE EDUCATION
How Does it Work?
The 30-year fixed mortgage is a great option for people as it comes with lower payments and fixed interest rates that are spread out over a period of 30 years.
You’ll be paying off the mortgage in 30 years; even though you’ll be paying more interest throughout the course of this loan, you won’t be paying a lot in monthly payments if you compare it with a 15-year fixed loan
The mortgage can be paid down whenever you want, and there won’t be any prepayment penalties.
All the payments you make will be used to pay the interest (the fee you’re paying after borrowing money) and the principal (which is the borrowed amount). Your insurance and taxes will also be covered with your payments.
The best part about the fixed interest rate is that the interest and principal payments will remain the same. However, your insurance and taxes can increase or decrease.
The mortgage insurance may need to be paid. However, this is dependent on other factors. For instance, if you’re buying a house it will depend on the down payment you made. If you’re refinancing, it will depend on your equity amount.
THE MAIN BENEFITS
There are several advantages that you gain with the 30-year fixed mortgage, which include:
You’ll be paying less money in monthly payments compared to a 15-year fixed mortgage because the payments are going to be made over a longer duration.
The interest on a 15-year fixed mortgage today is 3.875% (4.324% APR), and interest rate for a 30-year fixed mortgage is 4.375% (4.668% APR).
The interest rates will be fixed throughout the loan duration, so you don’t need to worry about rising interest rates.
You can purchase your home by making down payments of as little as 3%.
You can also refinance your primary home for nearly 97% of its overall value.
Why Choose Iconic Mortgage Corp for Acquiring A Loan
When you’re thinking about getting a loan, think of the several benefits that you stand to gain by choosing Iconic Mortgage Corp. Some of these benefits are:
Dealing with less paperwork, as the application process is online; this makes tracking your mortgage application easier as well.
You can ask our Home Loan Experts all types of questions and get answers about the type of mortgage that is right for you.
Managing your mortgage is easier as you can do it online after closing your loan, with the help of our lending partners, who’ll manage your mortgage and there are no hidden charges as well.
You can purchase your home by making down payments of as little as 3%.
You can also refinance your primary home for nearly 97% of its overall value.
