Why would I want a Fixed-Rate Mortgage?
Fixed-Rate Mortgages come pretty much the way they sound: with a fixed interest rate that is guaranteed not to change over the life of your loan, not matter how the market changes. Therefore, Fixed-Rate Mortgages are good for people who want fixed monthly bills, and who plan on staying in their homes for an extended period of time. People with fixed incomes or strict budgets will be interested in Fixed-Rate Mortgages because of their predictability. Fixed-Rate Mortgages are a common choice for homebuyers.
What can I use a Fixed-Rate Mortgage for and what are my options for a Fixed-Rate Mortgage?
Fixed-Rate Mortgages are useful because they offer people a set interest rate, and if they apply for their mortgage when interest rates are low, they will always have a low interest rate. Even if they have a higher interest rate at first, if interest rates drop significantly they can always consider refinancing. Of course, there are drawbacks to Fixed-Rate Mortgages too. They often come with higher interest rates and higher payments.
What lengths of repayment periods are offered for Fixed-Rate Mortgages?
Why would you get this type of mortgage?
As stated before, Fixed-Rate Mortgages are predictable and if interest rates are good when you are applying for a loan, then it’s probably a good idea to nab one. Another benefit to Fixed Rate Mortgages is that you can choose the length of your repayment period. You can get as short as a ten-year loan, and as long as a forty-year loan. The thirty-year loans are the most common.
How would someone go about getting this type of mortgage?
You can apply for a Fixed-Rate Mortgage right now. Click here to begin.
Another tidbit about Fixed-Rate Mortgages…
In the beginning of your mortgage payment period, a great deal of the money you put down will go towards paying the interest. As the interest portion of your payment reduces over the years, more of your money will go towards paying the principal.
How can my FICO/Credit Score effect my mortgage rate?
Credit Scores are very important when determining mortgage rates. If you score between 720 and 850 you are A-Paper, which means you have good credit. Anything below 660 will give you trouble when finding a lender, and anything below 620 will make you Sub-Prime or Non-Prime.
This site is not a broker and does not collect or solicit mortgage applications. Content is for informational or comparison purposes only. Services are not available in New York. Products and services may not be available in all other states.