20-Year Fixed Mortgage
If you are not sure that you can afford the payments of a 15 year fixed mortgage or you do not want to stretch your loan out to a 30 year fixed or 40 year fixed rate product, then a 20 year mortgage program might be right for you. 20 year home loan programs have become increasingly more popular in recent years by providing a happy medium between long term and short term fixed rate products. Typically, the rates for these loans fall somewhere between their 15 year mortgage and 30 year fixed counterparts.
Sample Fixed Rate Mortgage Loan Criteria:
20 Year Mortgage
5.75% Mortgage Rate
Monthly principal and interest payment: $877.60
Total Interest Paid over life of loan: $85,625.05
30 Year Mortgage
5.875% Mortgage Rate
Monthly principal and interest payment: $739.82
Total Interest Paid over life of loan: $141,335.81
15 Year Mortgage
5.625% Mortgage Rate
Monthly principal and interest payment: $1030.00
Total Interest Paid over life of loan: $60,399.61
With the 20 year home loan, you shave off some of your monthly payment compared to the 15 year fixed. Plus, you save tens of thousands of dollars in interest by shortening the term of the loan from a 30 year program. Note: This is only a rough sample for educational purposes. Always be sure to review APR and closing costs when choosing a provider and program.
Shopping for some of the best 20 year fixed mortgage rates
When it comes to some of the best 20 year fixed rates on the market, start your research at our site. The companies listed in the survey display their low rates for a wide variety of financing options. Give them today for a consultation. You can also get started by visiting their web sites for more information.