With a fixed-rate mortgage, the interest rate does not change for the term of the loan, so the monthly payment is always the same. Typically, the shorter the loan period, the more attractive the interest rate will be.
Payments on fixed-rate fully amortizing loans are calculated so that the loan is paid in full at the end of the term. In the early amortization period of the mortgage, a large percentage of the monthly payment pays the interest on the loan. As the mortgage is paid down, more of the monthly payment is applied toward the principal.
A 30-year fixed-rate mortgage is the most popular type of loan when borrowers are able to lock into a low rate.
Benefits:
Lower monthly payments than a 15-year fixed-rate mortgage
Interest rate does not go up if interest rates go up
Payment does not go up; it stays the same for 30 years
Drawbacks:
Higher interest rate than a 15-year fixed-rate mortgage
Interest rate stays the same even if interest rates go down
A 15-year fixed-rate mortgage allows you to pay off your loan more quickly and lock into an attractive lower interest rate.
Benefits:
Lower interest rate
Build equity faster
If interest rates go up, yours is fixed
Drawbacks:
Higher monthly payment stays the same if interest rates go down
Interest rate stays the same even if interest rates go down
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Why JGH?
We’re a family-owned and -operated company
based out of the St. Croix Valley and serving the Twin Cities metropolitan area and western Wisconsin. J.G. Hause was founded in 1990 and has grown slowly and steadily to become an industry leader with a strong reputation for integrity, quality and service. We pride ourselves on our customer satisfaction. Many of our projects are the direct result of referrals from past satisfied customers, and that speaks volumes. We’ll be here for you when you need us, and our quality and value will remain long after your project has been completed. Put our experienced team to work for your next project today!