subject: Locking In the Home Mortgage Loan Rate As Long As Possible in This Low Interest Conditions [print this page] Locking In the Home Mortgage Loan Rate As Long As Possible in This Low Interest Conditions
Attractiveness of 30 year fixed rate mortgages elevated substantially as the rates touch really lows in recent times. Their attractiveness is based on the fact that the loan payments are span over a long period making monthly payments lower and the rate is fixed for the entire term. They are great for assurances, family budgeting and having an easy sleep without fretting about the rates rising once more. Many consumers believe that it is advantageous to get a further period home mortgage loan and they would have taken even longer period home loans if they were attainable.
Most existing home mortgages permit the people pay lump sums when they have accumulated extra cash and thus lower the loan amount while keeping the low monthly loan payments. Since the home loan interest is tax deductible, consumers would not be troubled that they will end up paying interest for a far too long period. In addition, reduced monthly payments would facilitate the purchase of a bigger or a better neighborhood home. One more advantage may be that people would have better investment instruments for their extra cash besides paying the mortgage earlier. Consumers could feel that they do not want to pay all their investments in sleepy home equity and be risk-taking with part of their cash.
On the other hand, you would have much more eventual interest payments over the run of 30 year fixed mortgage in comparison to a 15 year fixed rate. The latter is ideal for consumers who would need to pay back the borrowed money as quick as possible and own their home mortgage free. You would have accumulated home equity a great deal faster with a shorter term option. 15 year mortgage would result in higher monthly payments and maybe a little bit lower interest. But people do not seem to mind for the above grounds and still favor the longer term choice. Especially in the today's atractive rate conditions, fixing your mortgage as long as you can and concentrate on other objectives in your life is a real marketing feature.
