Compare Fixed Mortgage Rates - Find the Best Mortgage Interest Rates Today!

You've decided to compare fixed mortgage rates for your newly built home to find the current best mortgage rates. Mortgage interest rate predictions show that fixed mortgages are the safest loans!

You've been building your masterpiece of a home for months and now it's time to refinance and find the best mortgage rates forecast and terms available.

There are two main types of fixed rate mortgages:

Other loan terms (such as 10, 20, and 40 Year Fixed Mortgage Rates) exist but they are not as commonly applied for or used. All this of course will depend on the type of construction loan you acquired in the beginning of your home building project. If you secured a double close loan where you need to secure financing when your project is complete, keep reading below.

Have you decided on the loan period of your new loan? Do you need a 15 year mortgage or a 30 year mortgage? Evaluate your financial situation, use mortgage rate forecast, and take a look at the information below!

Compare Fixed Mortgage Rates - The Advantages of 30 Year Fixed Mortgages

  • You will pay lower monthly installments on your mortgage. You can also use this mortgage calculator to determine the amount you can afford to pay monthly. You will notice the significantly lower payment with a 30 year fixed mortgage versus a 15 year fixed mortgage.

  • Qualifying for a 30 year fixed mortgage will be a little easier based on income requirements. The amortization of a loan over 30 years means lower monthly payments, which means you can make less and qualify for more!

  • In difficult financial times (The mortgage meltdown, for example), this may be the only option available to you.

  • Now the Negative Side of 30 Year Fixed Mortgages

  • The main disadvantage is that in the first 10 to 15 years of your mortgage, you will be paying more interest than principal on your monthly payments (see the chart on how are mortgage rates determined to view an example).

  • If your home's value isn't above market value, securing a loan will be rather difficult. Even at mortgage interest rates today, you're in for an uphill battle for financing.

  • You will also have PMI (private mortgage insurance) payments to worry about. This is an extra payment add to your monthly payment until your mortgage amount reaches 80% of the total loan.

  • Compare fixed mortgage rates - The Advantages of 15 Year Mortgages

  • We are talking about a loan term difference of 15 years, that's worth a sizeable amount in interest payment savings! You can use mortgage rates forecast to make a more informed decision about what you can afford.

  • Your retirement savings will not be adversely affected by your mortgage payments. If you have planned well, your mortgage should be over by the time you are about to retire or sooner! You will not need to rely on your social security checks to pull you through.

  • You also get the current best mortgage rates available on the market. Interest rates are always lower for shorter term mortgages.

  • You will be paying a lot more money towards the principal balance of your loan much sooner than with a 30 year fixed mortgage.

  • Now the Negative Side of 30 Year Fixed Mortgages

  • The main disadvantage is that these mortgages cost usually hundreds more per month in monthly payments. This may or may not be acceptable to your financial situation.

  • Also, since you are paying less in interests, you also get less tax benefits on your home mortgage.

So......How do I compare fixed mortgage rates?

Well, if you qualify for a 30 year mortgage only, you need not worry about a decision! However, if you have a choice between the two terms, you will have to do more self examination.

  • Consider your budget - your budget is the most important consideration here. If you are working on a tight budget and a 15 year mortgage payment will make you watch your income closely, maybe a 30 year mortgage is better for you.

  • Consider the bigger financial plan when you compare fixed mortgage rates - more and more experts are encouraging homeowners to take a long term view of mortgages. For instance, if you are more interested in building up the equity on your home, you are better off with a 15 year mortgage. This is of course if you have reserve cash somewhere that can be used to deal with emergencies. If not, you should seriously reconsider the steep payments you would have to make every month.

  • Are you on the financial fringes? - if making steep payments every month makes you feel a bit uncomfortable, you are better off with 30 year mortgages. After all, you can always save on the interest by paying on a bi-weekly basis (saves the equivalent of one mortgage payment each year usually)!

  • Are you disciplined enough? - If you are going for a 30 year mortgage, you will make lesser payments per month. What will you do with the amount you save? Will you stow it away somewhere safe? If you know that you're not going to save any of it, a short term mortgage is better for you.

No matter what you decode, most experts will tell you that you should not put all your eggs in the same basket! Compare fixed mortgage rates for both loan terms! The mortgage interest rates today are low and may rise but the security of knowing your payment will be fixed is the reason you opt for one of these two loans.

However, if you are opting for a shorter mortgage, make sure you have some cash stowed away for the education of your kids or an emergency. Make sure you have adequate funds to make the payments. When you compare fixed mortgage rates, just make sure you make the right decision for you and your family!

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