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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. 2 min read
Jumbo Home Mortgage Loans If you are thinking of buying a home with a higher property value and can handle larger monthly mortgage payments, a jumbo loan could be a suitable option for you. Jumbo loans are typically offered with the same options as conventional loans, and you may even be able to add extra features, such as interest-only payments or temporary buydowns. What Is a Jumbo Mortgage Loan? A jumbo home mortgage, or non-conforming, loan is any mortgage amount that exceeds the conforming loan limit set by the Federal Housing Finance Agency. Because jumbo loans cannot be issued by Fannie Mae or Freddie Mac, they often carry more credit risk and have slightly higher interest rates than other loan options. The current conforming loan limit is set at $510,400 for a one-unit property in the contiguous United States (including D.C. and Puerto Rico). So, if you want to buy a house for more than $510,400, your loan will be considered jumbo. Jumbo loan limits also vary depending on location of property and number of units on it. In Alaska, Guam, Hawaii, and the U.S. Virgin Islands, jumbo loan limits are higher. Things to Consider: Interest rates are usually slightly higher with jumbo mortgage loans than on conforming loans with lower amounts. If you choose the interest-only option, you cannot build equity through monthly payments without making voluntary principal payments during the interest-only period. Jumbo Loans from First Bank: First Bank offers jumbo loans in a variety of fixed-rate and adjustable-rate options. To learn more about our Jumbo Loans or any of our other home mortgage options, visit your local First Bank branch to speak with a mortgage specialist. Loans subject to credit approval. ———- Sources: Jumbo Mortgages: Definition, Rates and Loan Limits http://www.investopedia.com/terms/j/jumboloan.asp https://localfirstbank.com/mortgage/loans-programs/jumbo-loans/ Locations 2 min read
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