Odds are, before you started getting interested in buying a home you never paid attention to things like a 30 yr fixed rate mortgage in Rochester Hills. After all, why would you? But now you’re thinking about them all of the time. You might be going through a lot of frustration because you’re confused. Gem Home Loans can take away all of that negativity. We’ll show you exactly what type of loan will be the best fit for your finances. We’ll also tell you about programs you might not have previously considered.
A 30-year mortgage is extremely common. In fact, it’s probably the most common type of mortgage. Plenty of your friends probably have one, and if you grew up in a house, it probably had one as well.
The “fixed rate” part refers to the interest rate. There are fixed rate loans, and there are also adjustable rate loans. A fixed rate simply means your interest rate won’t change as long as you’re paying the loan. The interest on an adjustable rate loan, on the other hand, fluctuates as interest rates rise and fall. When they fall, your mortgage payment will go down. When they go up, so will your payment.
Info on 30 Yr Mortgages in General
When you pay any kind of mortgage, you’re actually making several different types of payments at once. Not only are you paying the principal, you’re also paying escrow, PMI (private mortgage insurance), interest and others. At first, most of your mortgage payment will go toward the interest, as the years go by, more of that payment will go to paying down the principal.
A lot of new homeowners get irritated when they find they’re paying so much in interest and not principal during the first few years of the loan. They want to build equity, and that’s simply not happening. But as the mortgage balance gets smaller, the interest portion of the payment will go down as well.
Speaking of interest rates, they’re usually higher with a 30-year loan. But because monthly payments tend to be more manageable, this type of loan still remains the most popular option.
There are a lot of different kinds of loans, and a Gem Home Loans expert will be more than happy to tell you about all of them. For example, the two most common types of conventional loans are 15- and 30-year mortgages. If you can swing a high monthly payment, a 15-year loan might be smart. You won’t pay nearly as much interest, and you’ll pay off the home much faster.
The downside with a 15-year mortgage is the commitment. You’ll be locked into a really high monthly payment, and things could change. Unless you’re completely certain your financial situation is strong enough to commit to a 15-year mortgage, you’ll probably want to go the 30-year route.
The professionals with Gem Home Loans can tell you everything you want to know about a 30 yr fixed rate mortgage in Rochester Hills. We’ll show you the pros and cons of different programs, and then recommend the one we feel will be in your best interests. Get in touch by contacting us online or calling (248) 780-0601.