Is the 30 year fixed rate mortgage the best loan? Yes! Is the 15 year fixed rate mortgage the best loan? Yes! Is the 10 year mortgage the greatest of loans? Yes!
How can all 3 of these loan terms be the best? Well, they’re all the best option for different people. At MasonMac, we offer loan terms for everyone – if a 30 year fixed is best for your situation, we’ll let you know that. But maybe a 27 year loan works best for you. Or maybe a 13 year loan fits your financial situation like a glove. Unlike other lenders, we don’t stick to the conventional rules of 30, 20, and 15 year loans. Our loan terms are flexible because our goal isn’t to provide a “best loan”. Our goal is to provide the best loan for YOU.
For MOST borrowers, yes, the 30 year fixed rate loan tends to be the go to – this product offers a mortgage term that’s manageable, competitive rates, and a lower monthly payment than a shorter mortgage term. In the current environment, the rate is actually pretty close to shorter term loans, too, which isn’t always the case (perhaps you’ve heard of the ‘yield curve inversion’ that’s been in the news?).
Most mortgage loans these days don’t come with prepayment penalties, so borrowers can pay off their loan as quickly as they want. If they have a 30 year loan, they can make extra payments to turn their loan into a 10 year loan, but that does require discipline. Usually, that 30 year loan will have a higher rate than a 10 year loan term, too. So if a borrower has plenty of disposable income, they could save one some interest with a 10 year mortgage term – again, it depends on the unique borrower.
For some people the discipline to pay extra toward the mortgage just isn’t something they have, and they know it. In that case, it makes refinancing into a 30 year loan when they’re already paid 2, 3, or 4 years off their mortgage pretty unappealing. For them, we all an individual to choose their own terms – you’ve already paid 3 years into your 30 year loan but rates have dropped? Great, let’s look at a 27 year mortgage loan option. Planning your mortgage payoff to coincide with your retirement? We can put together a loan term that matches your plans perfectly, so the year you plan on retiring is the year your mortgage balance hits $0.
Whether you’re thinking about refinancing or buying a home, we want to have the best options for you, regardless of your financial plans. Our ability to offer choices in loan terms is just one way we’re able to help. So whether you want a longer term loan that stretches out to 30 or 40 years, something shorter term like a 10 or 15 year mortgage, or any mortgage term in between, we’ve got the loan product for you!