Mortgage Calculation, 2- 30 Year Mortgage Rates: A Specific Guide For Mortgaging Homes

Mortgage Calculation

The economy is quite shaken right now and people will be restoring to mortgaging homes than buying homes or real estate. If we are talking about mortgages, then first, we need to understand what mortgaging is and how to mortgage a home.

How To Mortgage A Home: 2- 30 Year Mortgage Rates

If you are thinking about mortgaging a home, then the ordeal is quite simple, if you understand it. The first step to mortgaging a home is to assess and define your requirements, then get in touch with the right party, tell your requirements, apply for the process, wait for the approval, and then get started. Mortgaging a home starts with you initiating the mortgage process yourself. Essentially, there are six different steps of mortgaging a home, including the following:

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While the process of mortgage and mortgage calculation will become easy if you understand it, the decision to the mortgage will always be tricky. However, if you have decided that you are going to mortgage a home, then the next step is reading up on mortgaging homes and then getting started. It is not that difficult. The only thing is that you have to understand the process.

Getting Started On Mortgaging A Home

To get started on mortgaging a home, the process starts with mortgage calculation. To do that, you have to convert the yearly interest rate to a monthly interest rate by dividing it by 12 (months in a year). Then, you add 1 to the monthly rate. Next, you have to multiply the number of years in terms of the mortgage by 12 in order to calculate the total number of monthly payments that you will make.

On the other hand, you could also do it by finding a mortgage calculator online (Link) and calculate your mortgage rates.

If you are short on money, it is advisable you go for a 2- 30 term mortgage, depending on how much money you are spending on your mortgaged home. If you have money, you could go for a shorter term.

30 Year Fixed Mortgage Average In The U.S.
30 Year Fixed Mortgage Average In The U.S.


Mortgaging A Home: Important Steps To Follow 

The first step to mortgaging a home will start by you deciding how much money you want to spend on your home, second, by deciding the terms of the mortgage (say if you are willing to get a mortgage home for $500,000, then it is better that you go for a bigger mortgage term if you cannot afford to pay back in say, 3-5 years (opt for a 2-30 year mortgage rates). Then, you calculate the mortgage rates by using a mortgage calculator, initiate the process, wait for the approval, and start planning.

average 30 year fixed mortgage rates.png

Calculating Mortgage Payment, 15-Year Mortgage Rates Today: Planning Ahead

While experts recommend going for a mortgage rate that you can afford and sort your payments as quickly as possible, if you want a bigger home and you can ‘take it’, then it is better that you go for a mortgage rate of say 5-10 years or 15-20 years or 20-30 years. It all depends on you!

Most people choose to go for a higher mortgage term when they don’t have much on and in hand (cash in hand). If that is the case, then you can go for a 15-year mortgage. 15-year mortgage rates today are higher than say 2 years ago but lower than say 2-3 weeks ago. Given the state of the world today, it is better to wait for another 2-3 weeks for businesses to find stability and then choose your pick.

However, it is always better to go for a mortgage term that is a mid-long term.

15-year mortgage rates

Furthermore, it will be quite obvious to say that the market, in 2020, will remain a little unstable. Mortgage rates might be higher because there is low unemployment and perhaps, people might be making a transition to shift to smaller homes to save money. If that is the case, it would be better to go for a mortgage that is less than 3%.

Secondly, if you are a new buyer and just looking to buy a home, say a 5 bedroom house or a 6 bedroom house, and depending on the locality as well, then you would want to settle for a home that has a long due payment term. This would mean perhaps, settling for 2- 30-year mortgage rates. If we look at statistics and according to Bank Rate, refinance mortgage rates have been mixed but one key rate was higher.

According to news, the average rate for a 30-year fixed-rate refinance has been higher. However, the average rate on a 15-year fixed rate has been a little low.

Furthermore, the average rate on a 10-year fixed refi has again been low.

What I would say is that a 30-year fixed rate would be for a home that is bigger than a 6-7 year home, a 15-year fixed rate would be better for a 5-6 bedroom home (which is more popular, easily managed and easily apprehensible) and a 10-year fix refis rate would be suitable for those who are willing to mortgage a 2-3 bedroom home.

15 mortgage rates

Source: Bankrate


If you are following till here, then let us make it easier for you to define and suggest a meaning and alignment to mortgaging homes, the process of mortgaging homes, calculating the mortgage rates, depending on the total mortgage calculation of the designated home, deciding which kind of mortgage rate to go for and then finally, the decision to mortgage a home.

Why People Will Be Mortgaging More Homes This Year

This year has literally shocked everyone, thanks to the coronavirus upset. People have lost jobs, employment has been low and people are not earning or earning as much as they used to.

Since people will be moving and would be shifting to smaller places to keep up, they will still have to deal with the mortgage rates because salaries and expenses will be high. For this reason, most people will be shifting towards getting a home with 2- 30-year mortgage rate.

Depending on the location of where you are getting your home, prices will be high and with interest rates, you might want to have a well-sought plan before you make the decision.

A Simple Guide Towards Mortgaging Homes

As mentioned earlier, the process of mortgaging homes starts with you deciding the kind of house you want, the type of house you want, in which locality you want the house to be in and finally putting a stamp on it as to which one to go for.

Once you are through with that, the next step is mortgage calculation.

This year is going to be very tough so people would have to ‘keep up’. For this, it is advisable that they go for 2- 30-year mortgage term rates or a 15-year mortgage (by calculating the 15-year mortgage rates today), or by calculating mortgage payments or perhaps refinance mortgage rates.

Nonetheless, while the ‘formula’ of calculating the mortgage rate has been written above, you can calculate the mortgage rate, after you have decided about your home, by using a mortgage loan calculator or perhaps, our recommended Zillow mortgage calculator.

Mortgage Loan Calculation

This year and as of 22nd May figures, 30 years fixed refinance rate is 3.59%, up by 1 basis point since last week. A month ago, it was 3.61%. This is because a month ago, things were ‘getting back together’ but since markets are a little unsteady right now and will be; mortgage rates will increase or decrease by pretty much the stats of it.

One big dilemma people usually have while going for mortgage loans is that they wonder if it is better to go for a mortgage term that is longer (so that they can pay in more time) or for a lower mortgage term (say a 15-year mortgage term) so that they can go for a higher payment but refinance by an earlier term.

The truth is that the smaller the years of refinancing, the higher the monthly payments will be and the longer the years of refinancing, the smaller the monthly payments will be. However, in longer-term mortgages, you will be paying more eventually and for a shorter term, you will be paying a little higher every month but eventually get rid of the mortgage quicker.

Our suggestion is that you go for a house that you can afford and mortgage it is a term that makes you pay less.

The suggestion is to go for a fixed-term loan, with repayment of 2-3 years and a house initially of 2-3 bedrooms. If you can afford it, there is no limit to bedrooms and there is no limit to money or payments.

The best idea is to make sure that you calculate the mortgage loans before time. Without that, you will be lost.

Mortgage Calculator: Zillow Mortgage Calculator

While there are plenty of ways to calculate mortgage payments, you should first try to calculate the mortgage payments yourself (with the formula at the start of the article). There is also no limit to mortgage loan calculations. Therefore, go for a mortgage loan calculator that is known for exact results. For that, you should go for the Zillow mortgage calculator.

Furthermore, as far as the 15-year fixed refinance is concerned, the average rate for a 15-year mortgage rate today stands at 2.94%, which is down by 11 base points since last week.

Depending on the amount of money you are spending on the house, 15-year refinance mortgage rates will cost you about $684 per month for $100,000 borrowed. While the monthly payments of your borrowed loans will increase that way, it would help you with the amount of money you spend on a 30-year mortgage.

Essentially and as mentioned earlier, it will all depend on you. However, times will be tricky ahead and our suggestion is to go for a home that is in your budget (as much as you can afford over the next 5 years), work along with it, save for another plan and keep going till your financials are fixed.

What Is Ahead In 2020? Planning And Preparing For The Next 2-3 Years

Truthfully, times ahead will be tough. This is because 2018 to 2019 and 2020 till perhaps 2022, people will have to work hard to maintain their status quo. Businesses will be working head to toe and be stringent about their operations especially hiring and recruitment. Times ahead will be challenging, especially for those who are on a pay-roll.

In these tough times, a lot of people might be selling their homes (assets) to have something on hand and lease, while others might be moving towards smaller homes.

We personally don’t think people will be buying right now because prices will be higher and so will be the interest rates (they might be lowered to ‘keep things going’) but buying will be a non-existent concern for the common population in particular.

This is why mortgaging homes might be a well-calculated theme this year and for the years to come.

If we are talking about mortgage, then we have to realize that it would be better for one to mortgage a home that is affordable. People might settle in for 2-3 bedroom homes (especially those with a child or two). The average price of a 2-3 bedroom home would approximately be around $300,000 to $500,000 in America.

Since most people might not be able to afford it, this is where a mortgage comes in.

To start your mortgage process, only decide the location and number of bedrooms you want in a home. Go for mortgage calculation (you have to calculate how much you will be paying per month, by first deciding how much you will be paying in advance) and then per month and then choose your pick.

It is better that you go for an interim of 2-30 year mortgage rate. We advise a 2-3 year mortgage or 15-month mortgage. However, if you don’t have much in your hand, then there is an option of a 2-30 year mortgage rate as well.

Before you make that leap, you have to calculate your mortgages. Go for a mortgage loan calculator (Zillow mortgage calculator) and you will be good to go.

Finally and to summarize:

A succinct plan for your upcoming mortgage could be the following:

  • Sell one major asset of yours (say a car and compromise on one thing: Either your status quo or your additional activities’) and start your ‘mortgage calculation’.
  • Use it as an upfront payment for your mortgage home.
  • Go for a 2-3 bedroom home or a one-bedroom home with 2 baths.
  • After paying upfront, decide the years of your mortgage payments. 15-year mortgage rates today are better than 2 weeks before but will be volatile in the time to come. Lookup for ‘refinance mortgage rates’ and do calculations upfront.
  • Move into your home, start working (freelance and do aside to a side job, partnerships, and so on to earn more and work on your mortgage payments in advance to complete the mortgage in due term).
  • Wait for your mortgage to get approved, settle in your new home, and work yourself up till success.

Stay tuned.



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