When you’re financing a new home in Grand Junction, your lender will probably give you several options. One of them is likely to be a 30-year, fixed-rate mortgage… that’s one of the most common. It’s the one most homebuyers assume they’re getting—but there is no one-size-fits-all solution. What works for your friends or family members may not be right for you, so they’re all options worth exploring.
What is a 30-Year Fixed-Rate Mortgage?
A 30-year, fixed-rate mortgage is a loan you pay back over a term of 30 years. Your interest rate won’t change, no matter what the market does, over the duration of your loan.
If you get locked into a 30-year mortgage at a 5 percent interest rate, but later, interest rates dip back down to the 2- and 3-percent levels they were at shortly after the crash, you’re stuck paying 5 percent. Your only option to lower your interest rate will be to refinance (unless, of course, you pay off your loan and call it a day).
There are 15-year fixed-rate mortgages available, as well, but remember that you’ll be paying quite a bit more each month on those loans than you would over a 30-year period.
You may also want to explore your options when it comes to adjustable-rate mortgages. In some (but not all) cases, those are a better choice. In an adjustable-rate mortgage, or ARM, you’ll typically enjoy a fixed interest rate for a certain period of time; after that period passes, your interest will fluctuate based on the market.
The bottom line: Talk to your lender about all your options. You may find that a 30-year, fixed-rate mortgage isn’t the right choice for you.
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Call us at 970-765-4135 or get in touch with us online to tell us what you want from your dream home. We’ll help you find it.
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