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Wed 16 Jan, 2008 03:01 pm
Ok, so we are looking at getting preapproved for a mortgage. There was an example listed with the different fixed rates. 40 yr, 30yr, 25 yr.
The example looks like this:
(terms, payment, interest rate, apr)
40 yr $973 7.5% 7.75%
30yr $911 6.25% 6.5%
25yr $965 6.125% 6.375%
I am all messed up now. How do i figure out which is the best way to go? I want the lowest repayment amount for sure. It seems that the 25yr would be that loan...but I am not sure.
Anyone out there who can explain this to me??
Hello!
I have been working as a loan originator for the past 6 years. If you were to take a 25 year term, the payment is usually higher even if the interest rate is lower. Because the term is shorter. You generally want to stick with about a 30 year mtg to keep the payment low just in case you run into any "unforseen circumstances". You can always pay more on the principal to pay it down quicker.
What state are you in and what exactly would the loan amount be? It's kind of hard to explain through a forum how the mortgage rates work, but I can answer all your questions that you have.
Also, is this a National company you are working with...like Ditech or Quicken loans?? Because those you should stay away from.
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