30 Years of Certainty
Thirty years can sound like a lifetime when you’re talking about getting a 30–year fixed–rate mortgage. There are so many uncertainties in life and who knows where you’ll be in 30 years. Will you switch careers? Will you move cities? Will you have children?
It may be a long period of time with many unknowns, but a 30–year mortgage provides you with many certainties:
- Lower monthly payments
Because your loan is stretched out over a 30–year term, you have more time to repay your loan, making your monthly payments more affordable and sustainable.
- Inflation protection
In 30 years, virtually everything around you will cost twice as much as it does today, assuming a 2% inflation rate. Yet, your monthly mortgage payment (minus taxes and insurance) and interest rate will remain the same as the day you locked in your loan — guaranteed. This provides your family with a level of security and predictability that’s hard to find in today’s world.
You can choose to pay–off your loan faster by adding to your monthly payments.
- Easier to Qualify
With the more affordable monthly payments that come with the longer term, you may qualify more easily than loans with smaller terms.
Speaking with a Vellum mortgage professional will ensure that you obtain the mortgage that’s right for your story.
Source: Freddie Mac