Fixed-Rate Loans from Reliable Main Mortgage Companies!

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mortgage companies

A mortgage loan is regarded as one of the most secured types of loans that are lent to someone who is looking to meet his housing goals. For the people who do not have enough income to buy their houses, these loans are a good option for them. Many professional companies like Nextgen Mortgage Inc. are running their business, assisting people by providing mortgages and refinance options. Moreover, some reliable Maine mortgage companies also forgo their initial fees for the new customers and do not make any money unless their client’s loan is approved.

Different Types of Mortgage Loans

Many professional Maine mortgage companies like Nextgen provide a large variety of mortgage loans to the customers according to their requirements. These loans vary in terms of

  • amount
  • kind
  • interest rates
  • installment payments
  • time agreement
  • terms and conditions, among other factors.

Depending on all these factors, some of the different types of mortgage loans are:

  1. Fixed mortgage loans
  2. Reverse mortgage loans
  3. Adjustable mortgage loans
  4. Interest-only mortgage loans
  5. Federal Housing Administration loans
  6. VA loans

Although most mortgages are mentioned, not all mortgage companies need to offer them. It would be best to consult your mortgage company about their offers.

Fixed-rate mortgage definition

As the terms indicate, a fixed-rate mortgage loan is a specific type of loan that has a fixed interest rate. This type of loan is most suitable for those who can easily afford a predictable payment every month. Borrowers who wish to be long-term property holders choose this type of loan as their priority. However, the terms and conditions of these loans vary according to the time of the agreement. The following are the main durations of this loan:

  1. 10-years fixed-rate mortgage loan
  2. 15-years fixed-rate mortgage loan
  3. 30-years fixed-rate mortgage loan

How to Calculate Fixed-Rate Mortgage Monthly Payments

As previously described that fixed-rate loans are those whose interest rates remain fixed throughout the entire duration of the loan. But the problem is how to calculate the exact amount of monthly payments. So, for finding that there are two very reliable methods:

  1. Using a Mortgage calculator

Mortgage calculators are defined as automated tools that are used to find out the exact monthly payments. They are used in two different ways:

  1. Lenders use these calculators to figure out monthly payments.

while

  1. Mortgage providers use it to determine the financial stability of any home loan applicant.
  2. Manual calculation by mortgage formula

Apart from using a mortgage calculator, you can also calculate monthly installment payments manually. The formula for a fixed-rate mortgage is

 

Payment = L[c(1+c)^n] / [(1+c)^n – 1]

Where

L = The principal amount

c =  the fixed interest rate/the number of months

n = the number of months for the duration of the loan

To show how this works we’ll use an example the amount or principle required is $100,000 at 7% for 15 years. We’ll calculate using the formula above the fixed-rate mortgage that is to be paid monthly

c = .07/12 = .0058333

n = 12 x 15 = 180

Payment = 100,000[0.005833(1 + 0.005833)^180] / [(1 + 0.005833) ^180 – 1

= 100,000[2.854] / 488.291

= $ 584.5

In this hypothetical mortgage, the amount would be a fixed amount of  $584.5

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