A 30-year fixed-rate Ohio mortgage gives the maximum tax advantage by having the greatest interest deduction. The 30-year term is attractive to some Ohio homeowners who are seeking the lowest monthly payment, especially if they do not think their income will increase dramatically. The 30-year fixed-rate Ohio mortgage has the following attributes:

* The monthly payments are constant (the same amount) during the term of the loan. * Each payment reduces the principal (slightly at first). * The previous month's interest is paid with the current payment. This results in a gradual: - Decrease in the interest charged each month - Increase in the principal amount credited - The principal payment will increase dramatically in the last several years of the loan.

* The monthly payment is always the same amount. * Spreading the payment over a 30-year period results in the lowest monthly payment of the fixed-rate Ohio mortgage options.

A disadvantage is the slow growth of equity. The equity in the Ohio home does increase as more principal is paid. But with a small principal amount paid monthly, especially in the first years of the Ohio loan, equity does not increase much.

20-Year Fixed-Rate Ohio Mortgage

A 20-year fixed-rate Ohio mortgage is the same as a 30-year fixed-rate Ohio mortgage except that the term of the loan is shortened by 10 years. That is a major reason why 20-year fixed-rate loans are becoming more popular. Demand for this product has increased dramatically since 1990. Still, only a fraction of the loans originated are 20-year Ohio mortgages.

15-Year Fixed-Rate Ohio Mortgage

A 15-year fixed-rate mortgage is basically the same as the 20- and 30-year mortgages. A 15-year mortgage calls for a higher monthly payment and results in a significant reduction of the principal annually. If the borrower is comfortable with the higher monthly payment compared with that for 20- and 30-year loans, the savings in interest paid and the quicker amortization of the loan are beneficial to the borrower.

Like 20-year Ohio mortgages, 15-year Ohio mortgages are also gaining in popularity as baby boomers desire at retirement to have:

* Lower fixed costs * Their homes paid for

As loan terms decrease, the interest rate charged on the Ohio mortgage generally decreases.

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