iFundRE.net offers variety of loans designed to meet a real estate investor’s needs. One of the products offered which remained popular over the years is the fixed rate mortgage.
Would-be borrowers choose fixed rate mortgages for the following reasons:
- It safeguards borrowers from the rise and fall of home loan rates.
- Unlike ARM which is affected by an increase in the interest rate, FRM remains the same allowing borrowers to save money in the long run.
- Borrowers are able to set payments because of the fixed payment throughout the course of the loan.
Since the payment is pre-determined, it is much easier for borrowers to pay the amortization. It allows borrowers to set aside funds for this specific loan. ARM is difficult to foresee because rates rise and fall from time to time. What makes FRM ideal is that it safeguards borrowers from the rising interest rates. In the past, home owners were affected by foreclosures due to the unexpected rise in the interest rates. Those who were under FRM were saved from the 2007 mortgage meltdown.
At iFundRE.net, you can choose between the 15 year fixed rate and 30 year fixed rate. Here are the advantages and drawbacks of these two loan programs.
15 Year Fixed Rate
- You can build equity much faster due to a shorter amortization schedule.
- Interest rates are much lower compared to the 30 year fixed rate loan.
- Interest rate remains the same over the 15 year period
- Monthly payments can be significantly higher than those on 30-year loans.
- Most of the time, borrowers are limited to smaller homes or properties
30 Year Fixed Rate
- You borrow money on a long term without worrying about changes in the interest rates.
- Monthly payments are lower compared to the 15 year fixed rate term.
- Lower monthly payments mean you can pool your resources to other investments.
- Higher interest bill affects your tax deductions positively.
- You build equity at a slower pace because early payments go directly to the interest rather than the principal.
- Interest rates are higher compared to 15 year fixed rate.
- Overall interest bill is much higher.
Get in touch with our loan consultants today and learn more about the perfect loan program that suits your needs.Apply Now