The loan term (also called Amortization) is the length of time before the loan is due to be repaid in full. Most common mortgage loans have 15 or 30-year terms.As a rule of thumb, the long the loan term the higher the interest rate, and vice versa. On average, banks charge 0.5% higher in interest rate on a 30-year fixed rate mortgage than on a 15-year mortgage. Also,
even though the monthly payment of a 30 year loan is much lower than that of a 15 year mortgage, a homeowner with a 30 year mortgage would pay much more in interest over the life of the loan.
A Listing agents or listing realtor works for the seller that has the property listed for sale. Although they can right contracts for buyers that have chosen not to have an agent of there own they are obligated only to have the best interest of the seller in the transaction.
Paying a little extra towards your mortgage payment every month will serve to significantly shorten the term of your loan.
A new loan tern that is becoming popular is the 40 yr term. This has become more popular because
I allows you to lower your payments because the loan is spread out over a longer term.
