No. 1: ‘Trendy 20-year mortgages’by Tim Manni
Number one on our Top-10 list of most popular articles of 2012 is “Trendy 20-year mortgages.”
Publish date: Oct. 10, 2012
Written by: Michele Lerner
More and more homeowners are taking a two-pronged approach to their refinance: lowering their interest rate and opting for a shorter-term loan.
While your monthly payments are likely to rise if you refinance from a 30-year loan to a 20-year loan, historically-low mortgage rates have made shorter-term home loans much more affordable.
20-year mortgages gaining popularity
According to the Mortgage Bankers Association (MBA), 30-year fixed-rate mortgages are still the most popular loan term for both purchase and refinance customers, but 20-year mortgages are becoming increasingly popular, especially among refinancers.
“Twenty-year fixed-rate loans are the third most popular mortgage product, behind 30 and 15-year fixed-rate loans, followed by 10 and 25-year mortgages,” says Matthew Robinson, senior public affairs specialist with the MBA.
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