Why would I want a Twenty (20) Year Fixed Rate Mortgage
A Twenty (20) Year Fixed Rate Mortgage is perfect for people who want a Fixed Rate Mortgage that has a little bit shorter term than the average Fixed Rate Mortgage.
What can I use a Twenty (20) Year Fixed Rate Mortgage for, and what are my options
You can use a Twenty (20) Year Fixed Rate Mortgage to finance the purchase of your home. Some similar alternatives to the Twenty (20) Year Fixed Rated Mortgage are the Fifteen Year and Twenty-five Year Fixed Rate Mortgages. Fixed Rate Mortgages are also offered in ten, thirty, and forty year terms.
Why should I get a Twenty (20) Year Fixed Rate Mortgage
A Twenty (20) Year Fixed rate Mortgage offers all the traditional benefits of a Fixed Rate Mortgage. You will have predictable monthly bills, and if you get your mortgage while interest rates are low, you will be guaranteed a low interest rate for the duration of your term. One unique feature of the Twenty (20) Year Fixed Rate Mortgage is its term. The average Fixed Rate Mortgage is thirty years and obviously, twenty years is shorter than thirty years. If you can afford the higher payments that a shorter term would require, this may be a good option for you. With a shorter term you will end up paying less on interest, will build equity more quickly, and will own your home outright much sooner.
How can I get a Twenty (20) Year Fixed Rate Mortgage
Lenders may be able to offer you a Twenty Year Fixed Rate Mortgage. Click here to apply.
How can my FICO/Credit Score affect my mortgage rate
Your Credit Score and FICO are important in determining your mortgage rate. We recommend getting your free online credit report. If you find that you scored between 720 and 850, you are A-Paper. You have good credit, and should have no trouble finding a mortgage that works for you. If you scored below 660 you will have trouble finding a lender even though the official cutoff between A-Paper and Sub-Prime or Non-Prime lending is 620.
Q: What are some drawbacks to the Twenty (20) Year Fixed Rate Mortgage?
A: The main drawbacks are one that you would find with any Fixed Rate Mortgage. If you secure your mortgage while interest rates are high, you will be stuck with a high interest rate throughout the duration of your mortgage. However, if the interest rate falls two points or more below the interest rate you are paying, it is probably worth refinancing. Another drawback is that fixed rate interests are usually a little higher than adjustable rate interests. However, you may find that paying a little more each month is worth the peace of mind that a predictable bill will give you.
This site is not a broker and does not collect or solicit mortgage applications. Content is for informational or comparison purposes only. Services are not available in New York. Products and services may not be available in all other states.