If you’re not sure whether to get a 15-year mortgage or a 30-year mortgage, there’s a great option for you: the 20-year fixed home loan. Gain some of the benefits of each type of mortgage, all with an easy fixed rate. You can combine the flexibility of a 30-year fixed mortgage with the lower interest of a 15-year home loan.
When you partner with Loan Cabin to take out a 20-year fixed home loan, you’ll get:
If you get a 20-year home loan, you’ll be mortgage-free fairly soon. You’ll build equity in your home that you can apply to a down payment on your next property.
Fixed loans, like the 20-year fixed mortgage, will always offer consistent monthly payments. You’ll pay principal and interest at the same time, so the full amount will be paid off after 20 years.
With a 20-year mortgage loan, you’ll have higher payments than you would with a traditional 30-year loan. Most likely, you’ll have to keep a tighter budget than you would if you’d opted for a longer mortgage repayment term.
If you’re in your 40’s or 50’s and want to pay off a new home before retirement, a 20-year loan could enable you to pay it off in time. However, paying your home off means that you’ll no longer be able to take a mortgage interest tax deduction.