Timing is everything when it comes to home loans, from knowing how long you have to close in order to secure your ideal rate to understanding the differences in loan terms. Loan terms are easy to identify. For example, a 30-year, fixed rate mortgage has a term of 30 years. However, determining what term is best for you can be extremely difficult.
The length of a loan is up to the lender and borrower. In fact, a loan can last any number of years. Commonly, home loan terms are one of the following lengths, which will vary based on the type of the loan and preferences of the lender:
The longer your home loan is, the more you will pay over the course of the loan in interest. If a low monthly payment is important, however, a longer-term may better suit your needs and give you an affordable payment.
Whether you’re a first-time homebuyer seeking to be pre-approved for a home loan, refinancing your home, or researching to understand the home buying process, learning about the common loan terms and what you can expect to pay monthly and over the life of the loan is a great first step.
What questions do you have about loan terms?
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Trying to consider which loan option is best for you? Download your copy of my 15 Year vs. 30 Year Mortgage Checklist here: Download 15 Year vs. 30 Year Mortgage Checklist
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