Best Fixed Rate Mortgage Tips
Combo Loans for Lowest Payments

Discover peace of mind with the best possible fixed rate mortgage combo, one that offers affordability with the potential for fast payoff. You don't have to refinance to accomplish this. In fact, you can do this even if you currently have a 30 or 40 year fixed rate mortgage.

Meet Kate Ford - Your Mortgage Insider

Ask Kate at Get-Your-Best-Mortgage-Rate.com

Hi, my name is Kate and I'm a retired mortgage broker.

For over 20 years, I helped thousands of people borrow millions of dollars.

I understood the inner working of loan programs and gave my clients these tips that you read at my website.

From time to time, I met borrowers who were overly optimistic about paying off their mortgage. They had the right idea, to be free of the home loan by retirement.

But they often boxed themselves into a corner with a 10 or 15 year term without realistically considering their budget. This led to another refinance (think closing costs and loss of equity) to get back to an affordable payment. To avoid this cycle, I began asking borrowers to consider a combo loan. Before I go any further, let's look at mortgage payments based on different terms.

Compare Fixed Rate Mortgage Payments

Compare the following estimated monthly payments based on borrowing $200,000 at 6%.

  • 40 year fixed rate mortgage - $1100
  • 30 year fixed rate mortgage - $1199
  • 25 year fixed rate mortgage - $1288
  • 20 year fixed rate mortgage - $1432
  • 15 year fixed rate mortgage - $1687

To understand why the payments get more expensive as the payback period gets shorter, take a look at these principles.

Principle One:

  • The longer the term (years), the lower the mortgage payment
  • The longer the term (years), more interest is paid
  • The longer the term (years), the slower the principal is paid off

Tip: If you want the lowest mortgage payment, ask your bank about a 40 year term.

Principle Two:

  • The shorter the term (years), the higher the mortgage payment
  • The shorter the term (years), less interest is paid
  • The shorter the term (years), the quicker the principal is paid off

Tip: If you want the mortgage paid off quickly, 15 year terms are an excellent option, as long as the payment is affordable.

Kate's Secret to Creating a Combo Loan

OK, finally, here is my little secret to creating a combo loan and this is important. The loan you are working with cannot have any prepayment penalties.

  1. First, you'll pick a longer term for the lowest payments, like a 30 or 40 year fixed rate mortgage.
  2. Then you'll make extra principal payments to pay less interest and reduce the principal faster. This is similar to having a 15 year fixed rate mortgage.
  3. But during a month when there's an unexpected expense, you'll have a safety net of the 40 year fixed rate mortgage payment.
Mortgage calculator

Visit my Mortgage Payment Calculator and start combining the best of both worlds, the advantages of a 15 year fixed rate mortgage, rapid principal pay down, with the safety net of the 40 year fixed rate mortgage, lower monthly payments.

Tip: Remember to add 1/12 of the annual insurance premium and property taxes to your payment.

For more help on budgeting mortgage payments, click here for How Much House Can I Afford?

Review Fixed Rate Mortgage Options

Remember Forrest Gump? While they polished their boots together, his friend Bubba described the many ways his mama cooked shrimp. Quoting from the movie Forrest Gump...

There's pineapple shrimp, lemon shrimp, coconut shrimp, pepper shrimp, shrimp soup, shrimp stew, shrimp salad, shrimp and potatoes, shrimp burger, shrimp sandwich...

Just like Bubba's shrimp, the best fixed rate mortgage comes in different flavors... the 30 year fixed rate mortgage, 40 year fixed rate mortgage, a 25 year fixed rate mortgage, 20 year fixed rate mortgage, and the popular 15 year fixed rate mortgage.

Where Do You Want to Go Next?

Adjustable mortgage rates if carefully researched and understood can be appropriate under certain circumstances, depending on your goals.

Residential construction loans are home mortgages designed for building a house. They come with long term and permanent financing options.

Affordable (and Guilt-Free) Home Decor

Let's talk affordable home decor... because who isn't on a budget? Being obligated to a mortgage doesn't mean you can't personalize your home.

Modernize the look of your family room with vibrant throw pillows, a guilt-free makeover for homeowners on a budget! More from Kate about home decor at Affordable (and Guilt-Free) Home Decor or start browsing...

Tell a Friend

The success of my website depends on word of mouth! Please share Best Fixed Rate Mortgage with your friends.

Recent Articles

  1. Getting FHA Mortgage Approval After Bankruptcy to Buy a Home

    May 04, 16 12:28 AM

    Getting FHA Mortgage Approval After Bankruptcy to Buy a Home
    Ask Kate about getting FHA mortgage approval after bankruptcy: Brian is trying to buy a home to live in with his two young sons. Even though 3 years have passed since his bankruptcy, he can't get FHA…

    Read more

  2. Kate's Mortgage Rate Report April 28: No Hint at Rate Increase

    Apr 28, 16 10:56 AM

    Kate's mortgage rate report for the week ending April 28, 2016: Feds Do Not Hint at June Rate Increase
    April 29, 2016 update! Rates down slightly, back to lows of April 19th, with the average 30-year fixed sliding down to 3.67 percent.

    Kate's mortgage rate report for the week ending April 28, 2016: Ye…

    Read more

> Fixed Rate Mortgages

Focus on Finance

Insider mortgage secrets delivered every Thursday morning by Super Kate.



Super Kate respects your email privacy.

Search My Site

Riveting Fixed, Hybrid, and Adjustable Rate Mortgage Help

Comparing Fixed and Adjustable Rates - Refinancing? Buying a house? Get current rates right here.

Get the lowest payment with this best fixed rate mortgage plan yet pay it down quickly.

The 15 year fixed rate mortgage will save thousands plus you'll be mortgage free after 180 payments!

What would you do with an extra $87,789? Meet the 20 year fixed rate mortgage.

Introducing the 25 year fixed rate mortgage combining security with a lower interest rate.

I crown the 30 year fixed rate mortgage King Of Mortgages!

Meet the 40 Year Fixed Rate Mortgage when fast mortgage pay offs aren't your cup of tea.

Are adjustable mortgage rates good or bad? It depends on your circumstances.

Plan for changes to your adjustable rate mortgage.

If the cheapest fixed rate mortgages will save you money, why pay for more?

Are interest only mortgage loans hidden adjustable rates?

Ask Kate About ARMs - Get an answer about mortgages that adjust.

ARM Ask And Answer - Questions about adjustable rate mortgages, each with a individual answer from Kate.