Fix for Adjustable Rate Mortgage Loan - 40 Year Fixed and 50 Year Fixed Rate Mortgage
With adjustable rate mortgage loans experiencing a lot of bad publicity, demand for 40 year fixed and 50 year fixed rate mortgage loans is on the rise. ECFG is now offering these products as an alternative to adjustable rate mortgage loans.
Costa Mesa, CA (PRWEB) March 23, 2007 -- Express Capital Funding Group is now offering its fixed rate products with reduced payment options. Spreading the repayment of a mortgage over a longer period of time can help homeowners to avoid adjustable rates, and at the same time have a fixed rate and reduced fixed monthly payments. For example, payments on a $300,000 mortgage at 6.5%, equal $1,896 on a 30 year amortization schedule, $1,757 on a 40 year schedule, and only $1,692 on a 50 year schedule. 50 year schedule saves a homeowner $204 per month.
Of course there are negatives. Adding ten or twenty years to the term of a mortgage is slowing down the rate of re-payment, which means after ten or twenty years of payments the balance is still going to be high. On another hand, these options are better then interest only, because, even at snail's pace, principal is reduced. Also, most interest only programs only allow interest only payments for up to ten year. After ten years a mortgage is re-amortized in to a twenty year fixed, without an interest only option, which significantly increases the payment. 40 and 50 year fixed have no such payment shocks because the rate is fixed for 30 years. Also, homeowners can always make a payment on a 30 year schedule to pay off the mortgage faster.
One other thing to know about 40 and 50 year mortgages is that most of them are due in 30 years, which means -- if a borrower was making payments on a 50 year schedule for 30 years, there will be a balloon payment at the end of the term.
To find out more about these reduced payment options or to get pre-approved, homeowners can contact Express Capital Funding Group for a free consultation at 877-850-5270, or visit www.expfunds.com
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