Mortgage In Rocklin CA

The monthly payment on a 30-year fixed-rate mortgage loan is often smaller and more affordable than a shorter-term mortgage. Moreover, when it is a fixed-rate mortgage, it means that the interest rate will not change throughout the loan tenure. If you take an adjustable mortgage in Roseville, Rocklin or Lincoln, the interest rate can change and increase your monthly payment. Here’s an example to help you understand the same.
Suppose you avail of a $250,000 home loan. With an interest rate of 4%, the monthly payment calculates to around $1,194 in a 30-year fixed-rate mortgage. However, if you opt for a 15-year fixed-rate mortgage on the same amount and the same rate of interest, you will have to pay around $1,849 per month. Similarly, if the interest rate also keeps changing every year or every 5 years, the monthly payment will continue to increase.

A 30-year fixed-rate mortgage gives you the flexibility to pay off your loan faster if you can. Wondering how? Since the monthly payment for this loan is low, sometimes you may be able to pay a little more than what you owe each month. For instance, you may have some spare funds in March and April, but in the subsequent months, you can only afford to pay the regular monthly payment. A 30-year fixed-rate mortgage in Roseville, Rocklin or Lincoln lets you pay the principal amount earlier.