what is a 10/20 30yr fixed loan?

Answer 1

A fixed loan has fixed payments for the life of the mortgage. If taxes and insurance are included as part of the loan payment (escrow) then the payment may increase as these variable costs increase; but not the amount going toward the loan.

Answer 2

That seems like an odd loan, but it is an Adjustable Rate Mortgage, or ARM. The first ten years it will have a fixed rate, of whatever they quote you, and then it will readjust to the current market mortgage rate and will have that rate for the remainder of the mortgage (20 years).

10/20 30yr. = 10 years fixed/adjusts every 20 years, 30 years total

I always suggest not doing an ARM, because recently people (including some of my clients) who had ARMs with terms of 5/1 30 yr. or 10/5 30 year. got their rate increased from around 5% to as much as 9%

Answer 3

Interest-only for the first 10 years.

Then you have 20 years to pay off the entire balance of the loan.

Your interest rate is FIXED for the entire 30 years. There is NO CHANGES TO RATE.

Just to clarify after all those other answers. FIXED RATE.

This is a fairly standard product in the market right now.

Answer 4

A fixed loan is a loan that the interest rate does not go up or down depending on the banks interest rate. You will always pay the same monthly repayment in 10/20 years and you do on you first payment

Answer 5

I would assume it is a ARM loan with a few extras...

I would not be on here asking tho because it could be anything! Ask your broker to explain it in full detail. Get it in writing if you need to, then ask on here again with the details.

Answer 6

Well, it depends..