What Are 20-Year Mortgage Rates?

There are various factors to consider when purchasing a home, including how to finance it. Some consumers may opt for a mortgage with a shorter term while others find it beneficial to extend the mortgage. It may be best to look for a 20-year mortgage for a lower price without putting yourself in debt until retirement. First, let us help you answer the question, “What are 20-year mortgage rates?”

What are 20-year Mortgage Rates?

20-year mortgage rates are an alternative to 15 and 30-year mortgage rates, the most common types of mortgage loans. 15, 20, and 30-year mortgages are usually offered as fixed-rate mortgages, meaning the interest rate you pay never changes. A 20-year fixed mortgage rate typically allows you to build equity faster and pay off your home in less time than other longer-term mortgage loans. They also typically have lower interest rates than other mortgage options because the term of the loan is shorter.

Benefits of a Fixed-Rate Mortgage

First Bank offers conventional fixed-rate mortgages, available in terms of 15, 20, and 30 years. There are many benefits to a First Bank fixed-rate mortgage, including:

  • Predictable monthly P&I payments
  • Protection from rising interest rates for the life of the loan
  • Sound investment for long-term home owners

What is an Adjustable Rate Mortgage?

First Bank also offers adjustable rate mortgages, or ARMs. ARMs have interest rates that change periodically. When the rate changes, your monthly payment will either increase or decrease depending on whether the rates rise or fall. First Bank’s ARMs are available for 30-year amortization schedules, with initial periods of 3, 5, or 7 years.

Contact First Bank Today

Whether you’re buying a home or interested in refinancing, First Bank has a loan option for you. If you are still have questions about mortgage rates or conventional loans, contact the First Bank Mortgage Help Center, or visit a First Bank branch near you.

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Sources:

Zillow: http://www.zillow.com/mortgage-rates/finding-the-right-loan/what-is-a-20-year-fixed-mortgage/