Alabama
Home Loans - Alabama Fixed Rate Mortgages
The
most common type of a alabama mortgage program where your monthly
payments for interest and principal never change. Property taxes
and homeowners insurance may increase, but generally your monthly
payments will be very stable.
Fixed-rate
mortgages are available for 30 years, 20 years, 15 years and even
10 years. There are also "bi-weekly" mortgages, which shorten
the loan by calling for half the monthly payment every two weeks.
(Since there are 52 weeks in a year, you make 26 payments, or
13 "months" worth, every year.)
Fixed
rate fully amortizing loans have two distinct features.
First, the interest rate remains fixed for the life of the loan.
Secondly, the payments remain level for the life of the loan and
are structured to repay the loan at the end of the loan term.
The most common fixed rate loans are 15 year and 30 year mortgages.
During
the early amortization period, a large percentage of the monthly
payment is used for paying the interest . As the loan is paid
down, more of the monthly payment is applied to principal . A
typical 30 year fixed rate mortgage takes 22.5 years of level
payments to pay half of the original loan amount.
Please
fee free to contact us for any information
on our Alabama Home Loans. I hope you find information on this
site useful for your new Alabama home purchase or refinance.
Thank
You,
The Alabama Home and Loan.com team