Fixed Mortgage Rates
A fixed rate mortgage means the interest rate remains the same throughout the term of your loan, which means your monthly payments will remain the same. It’s also known as an amortizing loan. The interest is typically higher for a fixed rate mortgage loan because it’s for a longer term. There are a number of advantages associated with a fixed interest mortgage rate, and it’s up to you to determine whether or not it’s an option you’d like to pursue when it comes to financing your home.
For one, fixed mortgage rates make it easier to budget your finances. It means you won’t have to worry about the interest rate skyrocketing or wondering what your payments will be in the future. Many homeowners find that level of security worth a lot more than the lower initial interest rate that often comes with an adjustable rate mortgage. Fixed interest rates are also a lot easier to understand. That means you won’t be struggling with the terms and conditions throughout the length of your loan…and there are a lot of them. You can obtain fixed mortgage rates by filling out t he loan application. Provide your financial details and information about the value of the property you’re looking to purchase to the lender; then they will determine the amount you qualify for and the interest rate.
There are certain requirements for a fixed rate mortgage, of course. Typically, fixed mortgage rates can be applied to loans with a maximum of $417,000. You’ll be required to put 5% as a down payment and have excellent credit (which means your FICO score is 740 or higher). Typically, loans are given out over a fixed 10, 15, 20, or 30 year period. The interest and APR rates generally vary for each option. If you have the funds to pay off the loan faster and build up equity, a 10 or 15-year loan will benefit you more than the lower payments associated with the 20 or 30-year loan. Down the road, you may also find yourself having trouble paying back a fixed rate mortgage. Luckily, these sums are available for refinancing.
Fixed mortgage rates are perfect for those who are looking to remain in their home for several years. You don’t want to be paying off a property you don’t own anymore, so finding the right mortgage is important. Do your research; find the right lenders and look into fixed interest rates for your mortgage. No matter what the life of the loan, you’ll be happy with the life you can build in your home thanks to a fixed interest mortgage rate.