The Perks of Fixed Rate Home Loans in Evanston
Fixed rate mortgages have several advantages, including long term stability. When you lock in your loan term, that’s it; you won’t be startled again. If you want to maintain the loan for more than seven years, a fixed rate loan with a 15-year mortgage is generally the best option, as it will keep your payment consistent, allowing you to better organize your finances.
Fixed Loans & Their Alternatives
While fixed rate mortgages are quite popular, they are not the only option in Evanston. Adjustable rates are frequently advantageous to homeowners, particularly if they do not intend to stay in their house for an extended period of time, rendering a 30-year mortgage obsolete. If you believe you will be in the property for a shorter period of time, an adjustable rate loan can typically save you money in the short term, making it an ideal purchase loan.
Choose the Fixed Rate Loan Length That Works for You
Many Evanston homeowners are torn between a 15-year and a 30-year mortgage. Our loan specialists can take you through the benefits and drawbacks of each, allowing you to make the best choice for your future. A 15-year mortgage requires a greater down payment, but you will pay less interest throughout the life of the loan. A 30-year mortgage is suitable for purchasers with fewer upfront resources since the down payment and loan terms are more manageable. However, you will pay extra throughout the life of the loan, and how much depends on your unique scenario.
Can You Pay More On a Fixed Rate Loan in Evanston?
It is legal in the United States to pay off your fixed rate mortgage early. This will allow you to pay it off more quickly and save money on interest. When you pay extra on a fixed rate loan, the extra money you spend each month is applied to the principle of the loan. The principle is the amount of money you still owe on the loan.
How To Pay Off a Fixed Rate Loan Sooner in Evanston?
Aside from paying more on principle each month, as previously noted, there are other strategies to pay off a fixed rate loan sooner. The most common method is biweekly mortgage payments. After the loan is closed, your lender’s servicer can set this up. It works like this: instead of paying your mortgage once a month, you pay half every two weeks. You’ll make 26 half-payments or 13 full payments because there are 52 weeks in a year. That extra full payment collected each year goes solely to the principle and can reduce the term of your loan by 5 to 7 years.
Spire Financial brings lending expertise to you. All of our loan officers offer personalized communication for every client, guiding them through the process. We can show you ways to maximize your finances and unlock future opportunities. Spire Financial keeps you in control of refinancing, debt consolidation, and home equity. Together, we can achieve your financial goals.