Comparing the 20 Year Fixed Conventional Mortgage to a 15 Year and 30 Year [Mortgage Rate Post]

Home owners looking to take advantage of today’s low rates with a refinance or purchase, may want to consider a 20 year fixed conventional mortgage. The 20 year fixed conventional offers lower rates than the 30 year fixed and lower payments than a 15 year fixed mortgage.

Here are some rates based on pricing available as of October 17, 2014 at 1:21 pm. Rates quoted below are based on a $500,000 sales price/value with a $400,000 loan amount (80% loan to value) with credit scores of 740 or higher. Rates apply to a purchase or rate/term refinance owner occupied, primary residence. Closing by November 24, 2014 or sooner. Mortgage rates are subject to credit approval and may change.  Click here for a current rate quote for homes located in Washington state.

15 year fixed conventional: 3.000% (apr 3.233%) priced with 1.072 points. Principal and interest (P&I) payment of $2,762.33 (property taxes and home owners insurance not included).

20 year fixed conventional: 3.625% (apr 3.821%) priced with 1.148% points. P&I of $2,345.61.

30 year fixed conventional: 3.875% (apr 4.041%) priced with 1.423 points. P&I of $1,880.95; or

30 year fixed conventional: 4.000% (apr 4.119%) priced with 0.854 points. P&I of $1,909.66.

Which mortgage is right for you depends on your personal financial scenario. Home owners can always pay more towards their principal to effectively create a shorter term loan and whittle down the interest.

If I can help you with your refinance or home purchase for your property located anywhere in Washington state, please contact me!