American Home Lenders http://www.americanhomelenders.net Mortgage Lending Sun, 06 Nov 2011 23:16:52 +0000 en hourly 1 http://wordpress.org/?v=3.2.1 Fixed Rate Mortgages http://www.americanhomelenders.net/fixed-rate-mortgages http://www.americanhomelenders.net/fixed-rate-mortgages#comments Tue, 01 Nov 2011 22:25:22 +0000 admin http://americanhomelenders.net/?p=14 What is a Fixed-Rate Mortgage?
This is a fixed-rate loan. The interest rate and monthly payment is fixed (does not change) during the life of the loan. The loan may be set to be paid off in 15, 20, 30, 40 or 50 years if monthly payments are made per the agreed upon schedule.

How do I know if this Loan Program right for me?
Most fixed-rate mortgages are for loan terms of 15 or 30-years. A 30-year loan has a lower monthly payment but a slightly higher interest rate. A 15-year loan has a slightly lower interest rate but higher monthly payments.  The longer the repayment terms, typically the lower the monthly payment, which may allow you to qualify for a larger loan amount. Even if the interest rate for the 20 year loan is lower than the 30 year loan because your repayment term is longer you will always have a smaller monthly payment. One disadvantage of longer term loans is you build equity slower compared to shorter term loans.

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