30 Year Fixed Loans

In the industry there are many options when looking for a home loan.  Of the various products, the 30 year fixed loan is by far the most popular of loan terms.

It makes good sense to see why.  A fixed interest loan means that the mortgage interest rate is locked in for the term of the loan, making payments consistent over the term of the loan.  Historically, 30 year loans are the most popular and affordable loans in terms of monthly payments.

There are many different terms for fixed rate loans, including 10, 15, 20 and 30 years, however the 30 year is most popular.

Another type of loan is the adjustable rate loan.  These loans are driven by current market interest rates and adjusted for agreed upon periods of time (generally one year or more).

When the national interest rates fluctuate, the future adjusted period of the loan is affected.  For instance, if interest rates increase, your loan cost and payments will increase with the next agreed time period.  If interest rates drop, your loan and payments will decrease for the next adjusted period.

Adjustable loans are tricky, and while most will have a “cap” on the limit of interest that can be charged in any period, the fluctuation may be a challenge should rates shoot up, as they have done historically in the past 30 years.

Regardless of the loan product, your mortgage will be structured for final pay off at the end of the term.

There are lots of options available for home loans including fixed and adjustable rate products.  For more information about 30 year fixed mortgages, check out our video by clicking here.  You will also find dozens of videos on our YouTube channel with expert advice about the mortgage process and industry.

Find us at Jeff Barton The Mortgage Voice on YouTube.