You can get a 30 year fixed rate mortgage in Wilmington, NC or you can get a 15 year fixed rate mortgage Wilmington, NC. A fixed-rate mortgage is a loan for buying a home in which the the interest rate remains the same through the life of the loan. The alternative, an adjustable-rate mortgage, is one where the interest rate varies over time. Fixed-rate mortgages and adjustable rate mortgages both have distinct advantages and disadvantages, though we're only going to look at 30 year fixed rate mortgages and 15 year fixed rate mortgages here. Fixed rate mortgages tend to be more popular in Wilmington, NC and across the rest of the country because they are more stable and guarantee the same mortgage payments for the duration of the loan.
Simply put, a 30 year fixed rate mortgage is a home loan paid off over the course of 30 years. The advantage of a 30 year fixed rate mortgage over a 15 year fixed rate mortgage is that it allows for lower payments. The 30 year fixed rate mortgage is the most popular type of home loan as it allows the homebuyer to pay the least on a monthly basis, even if they end up paying more over time.
As you probably guessed, a 15 year fixed rate mortgage is just like a 30 year fixed rate mortgage, except the home loan paid off over the course of 15 years. The advantage of a 15 year fixed rate mortgage over a 30 year fixed rate mortgage is that home equity is built up faster and the loan is paid off more quickly. A homebuyer can also get a lower interest rate on a 15 year fixed rate mortgage then they could on a 30 year fixed rate mortgage. On the flip side, the mortgage payments are obviously higher, as you're paying the same amount in principle in half the time.
Everyone's situation is different. Some people want to pay a mortgage off as quick as possible, and they can afford to do so. Other people just want to jump on the home ownership boat, but need smaller monthly payments. Contact our office in Wilmington, NC and we'll help you figure out whether you'd be better off with a 15 year fixed rate mortgage or a 30 year fixed rate mortgage.
Port City Mortgage is based in beautiful Wilmington, NC. We proudly provide mortgage services to Raleigh, Durham, Cary, Charlotte, Winston-Salem, Wilmington and Greensboro as well as the rest of North Carolina.