Fixed Rate Mortgage - Fixed-Rate Home Mortgage Loan
A fixed rate mortgage or FRM loan is the most popular form of mortgage because they give peace of mind. For long term planning it is safe as the interest rate remains the same for the period of mortgage. This means that even if the prime interest rate rises your payment will not change. The interest rate on your mortgage will stay the same and you can free up extra cash for other purposes.
The fixed-rate mortgage is available from 40 years to 15 year and in some cases 10 years but the most popular are the 30 year fixed rate mortgage and 15 year fixed rate mortgage. The shorter the term, the lower the interest rate but this means the monthly payment will be higher because it allows you to repay faster and save money on interest.
Advantages of Fixed Rate Mortgage:
Fixed rate mortgages are good for first time buyers and anyone on a budget who is looking for set monthly payment for the life of loan. With adjustable rate mortgages, your monthly payment can fluctuate which means that your spending can be unpredictable. Adjustable rate mortgages are great if interest rates goe down because your monthly payment will also fall but if the interest rate rises, your payments could go way up making it diffecult to pay. With a fixed rate mortgage, this is something you won’t have to worry about. With a fixed rate mortgage you have the security of knowing the exact amount you will repay each month, despite any changes in interest rates.
Your total monthly payment may go up because of real estate taxes and insurance or cost of living might increase. The payments on fixed rate loans are calculated in a way that in the end of the term the loan is completely paid off with interest.
Before you apply for fixed rate mortgage it is very important that you know how much money you need and how much you can afford to pay per month. If you know the price range of home you are looking for you can use our Simple mortgage payment calculator to get general idea about monthly payment.
If you would like us to match you with the best lenders available in your area and the best fixed rate mortgage you can qualify for ,then give us a call. We can make home buying a pleasent experience for you. We have partnered with many lenders to to get you the mortgage deal you always wanted.
|
