What advantages does a Fixed-rate loan have?
A long-term, fixed-rate real estate loan is repaid over a 15, 20 or 30 year term at an unchanging monthly payment and interest rate. A long-term fully amortized loan has distinct advantages for the borrower. The equal payments are spread out over a long period of time keeping the payments manageable and there is no balloon payment required at the end of the loan term. This type of loan is the most popular with borrowers mostly because this is the type of loan program that they are most familiar with. What are the advantages of a 15-year fixed-rate loan? The 15-year, fixed-rate loan is becoming increasingly more popular every year. They often have a lower interest rate, ownership in half the time of a 30-year fixed loan, and fantastic savings over the life of the loan. What are the disadvantages of a 15-year fixed-rate loan? The two major disadvantages of a 15-year fixed-rate loan are larger monthly payments, and smaller tax deductions. The advantages and disadvantages of a 30-year fixe
