Today's Article

Mortgages Available at 30 Year Fixed Rates

This is an exciting time in the lives of home buyers. The Federal Interest Rates are very low and there are a lot of motivated sellers. These two factors provide a winning environment for people considering the purchase of a new home. The low interest rates can save buyers a lot of money. The large pool of sellers eager to get their houses sold ensure that there are plenty of nice houses at very good prices for buyers to choose from.

If you have your mind made up that now is the time to buy, it is wise to learn the facts about mortgages with 30 year fixed rates. The 30 year mortgages is the typical loan that people get. 30 years may seem like a long time, but for buyers in their twenties, thirties or forties, a thirty year loan makes a lot of sense. A 30 year schedule of payments provides buyers with the security of knowing that their homes will be paid off before or shortly after retirement.

One very nice thing about 30 year fixed rates is the fact that you will be locked in at the current interest rates for the duration of your loan. If you follow financial news at all, you probably know that rates right now are very low. These rates will go up in the future. No one knows when they will go up or what they will climb to, but an increase is inevitable. That's why locking into the low rates now is such an attractive feature of 30 year fixed rates. 25 years from now, your house payment will be the same as it is today. There won't be many things that will be the same in 25 years. Isn't it comforting to know that the check you write for your mortgage will remain unchanged for decades to come?

Not only will payments remain the same, you will also not have to ride the tides of increasing and decreasing Federal interest rates. In a variable rate loan, you do just that. When the Federal rates increase, so do your payments. While it might be nice when rates are low, as we learned earlier, it is a fact of life that interest rates are going to rise. And the worst part is, you never know when or how much.

With 30 year mortgages being the standard, there is a good chance that this will be the duration of your home loan. Be sure to talk to your lender about the availability of 30 year fixed rates for your mortgage. You'll be glad you did.