When most people think about buying a home and getting a mortgage, the classic 30 year fixed (often shortened to just a 30 year mortgage) is what usually comes to mind. This type of loan has been offered for as long as lending institutions have been in business. There are some good reasons for this, like predictability and safety.
Looking for a 30 year mortgage? At California Mortgage Advisors Inc., we genuinely believe that we offer our customers the best mortgages in the industry. We have offered a variety of loans since 1993, which means our Mortgage Advisors have successfully matched tens of thousands of borrowers with loans tailored to meet their needs and unique financial situations. Our Mortgage Advisors are available at (800) 927-6560 to answer your questions or click here to apply online.
Biggest Advantage of Long-Term Mortgages:
Obviously, the 30 year mortgage is considered to be a long term loan. In this case, most homeowners are more concerned with predictability and stability rather than trying to save a few bucks and time economic changes and conditions. By paying the same amount of mortgage payment each month, you will never need to worry about your payment increasing and your household budgeting will not become a guessing game.
Another great advantage of such 30 year fixed loans will be taxes. Since you are largely paying interest during the first few years, you may have larger tax write-offs. Of course, this does become less of an advantage as the loan is retired, with a higher percentage of the payment being applied towards the loan’s principal (Please consult with your tax consultant for mortgage interest write-offs questions).
Available In Variety of Terms:
While the 30 year mortgage is the most popular fixed rate loan, it is by no means the only option. In fact, there are even 40 year terms available in some selected cases (residential properties only). There are also 25, 20, 15 and even 10 year fixed rate loans.
You do also have the option of making prepayments in most cases. In other words, you can always make a lump sum payment to be applied directly to the principal of the outstanding loan. This is actually a great strategy for retiring a loan early.
Other Types Of Fixed Rate Mortgages:
In addition to traditional loans with 30 year fixed terms, you can find any number of alternatives that might fit your situation better. For most conforming loan amounts, California Mortgage can provide you with a custom fixed rate mortgage of any number of years you decide up to 30 years.
If you know that you will not live in your home for more than 5, 7 or 10 years, you may want to consider an adjustable rate mortgage with a fixed rate period of 5, 7 or 10 years. You will receive a lower rate on an ARM over the prevailing 30 year fixed during the remaining years of ownership of the property.
At California Mortgage Advisors Inc., we have a 20+ year track record of helping borrowers secure a variety of fixed rate and adjustable rate mortgages. We understand that the loan programs can be confusing and that’s where our professional trained Mortgage Advisors can be of assistance to you. Our Mortgage Advisors are available at (800) 927-6560 to answer your questions or click here to apply online.