There are lots of options to choose from when it comes to home loans. You can find a specific type that suits best for your situation. That means finding the best deal is a matter of careful assessment of your mortgage needs, your financial situation, and the amount you are willing to set aside for payment.
In this post, we zero in on a 30-year fixed home loan, Santa Rosa, CA. Let’s find out its advantages over other options so that you will have an idea as to whether or not this is the best one for you.
Low monthly payments – Remember that there’s a lot that goes into buying a home. Payment for a mortgage is a combination of principal (value of the home), the associated interest, insurance, as well as estate taxes. These can be a lot to handle. A 30-year term can help borrowers ease the burden of the monthly payment.
Flexibility with payments – A 30-year fixed loan also offers some level of flexibility. If the borrower earns more money along the way, they can pay more than their scheduled monthly payment. The additional payment goes to the principal, which means savings as that portion of the principal will no longer compile interest. It should be noted as well that there is no penalty for paying more per month. So, a borrower can take advantage of that to pay off the loan faster.
Predictable payments each month – This is because of the fixed interest rate. Compared to adjustable-rate mortgages, fixed-rate mortgages are not affected by the volatility of the market. This is the reason why it is easy to predict the monthly obligations. You know how much you are going to pay regardless of the market’s condition.
Tax deduction for mortgage interest – There is also a tax deduction advantage that comes along with a 30-year fixed home loan, most especially with the 2018 changes to the tax code. (Please talk to a mortgage expert to get more useful insights regarding tax deduction).