![]() Early debt payment is beneficial so you can save for retirement, send your children to college, or invest in worthwhile ventures. It helps get rid of costly interest charges that should go towards savings and emergency funds. in Idaho:Ī shorter term allows you to pay off your loan faster. Robinson is the owner of First Choice Mortgage Co. In a Washington Post article featuring mortgage broker Jerry Robinson, he stated that more buyers should seriously consider a 20-year fixed mortgage. Likewise, some buyers refinance to a 20-year term after 2 or 3 years into a 30-year mortgage. If you can take this type of mortgage, you don’t have to worry about refinancing to a shorter term. Twenty-year fixed mortgages have more affordable monthly payments compared to a 15-year term. The good news? You can secure a shorter term even if you can’t afford a 15-year fixed-rate loan. Furthermore, borrowers who try to obtain 10 or 15-year mortgages are often limited to a smaller loan amount. However, this is steep for consumers who cannot afford higher monthly payments. A more common option is a 15-year fixed mortgage. ![]() While 30-year fixed-rate options dominate the market, people still look for a shorter term. Why Do Buyers Obtain a 20-Year Fixed-Rate Home Loan?Ī 20-year fixed-rate mortgage provides buyers with an alternative to 30-year loans. If you want to refinance, you’ll have to look for another lender. On the downside, borrowers with 20 or 15-year loans do not qualify for this program. Check with an approved USDA lender to see if you can apply. Furthermore, borrowers must have a record of 12 consecutive on-time payments. To qualify, your home must be a primary residence in a USDA area. Homeowners with 30-year fixed mortgages are eligible for USDA streamlined assist refinance program. *Check If You Qualify for USDA Refinancing Instead they are typically backed by Fannie Mae & Freddie Mac, which are government sponsored entities (GSEs). ![]()
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