20-Year Fixed

What is a 20-year fixed mortgage?

If you are not sure that you can afford the payments of a 15-year fixed mortgage or you do not want to stretch your loan out over a 30-year period, then a 20-year mortgage program might be a good fit.

20-year home loan programs have become increasingly more popular in recent years because they provide a comfortable medium between long-term and short-term fixed rate products. Typically, the rates for these loans fall somewhere between a 15-year and 30-year fixed mortgage.

The Benefits:

• A fixed monthly payment that remains the same throughout the term of the loan.
• Simple and easy to understand.
• Fixed rate protects against fluctuations in rate due to market conditions.
• Lets you build home equity through increasing monthly principal payments.
• You pay less interest than on a 30-year mortgage due to the shorter duration of the loan.

• You retain savings over the life of the loan due to a lower interest rate and loan term