411homerepair.com

What is a Fixed Rate Mortgage? How can it Help Me with Today?

by Guest on Jun 6, 2019

A fixed rate mortgage guarantees that the monthly mortgage payment will not change during the length of the fixed rate period. Fixed rate mortgages are usually for the initial period of the loan, anywhere from one year to ten years. After the fixed rate term ends, the mortgage will go to a variable rate for the remainder of the loan. A fixed rate mortgage has many benefits that can help out a new homeowner.

Advantages of a Modern Fixed Rate

One of the major advantages of a fixed rate mortgage is a guarantee that the monthly payments will remain the same during the fixed rate term.

Mortgage Broker Experts say “A fixed rate allows new homeowners to budget their money without needing to worry if their monthly payments will go up if interest rates rise. The amount that the homeowner will pay is set when they first take out a mortgage and the rate cannot change during the set period of time. Since the homeowner knows how much their monthly payments will be during the loan, they will not have to worry about the unpredictable rates in the future.” 

Protect Your Home

Having a fixed rate mortgage also protects homeowners if interest rates go up. Since the fixed rate was set at a time when interest was lower, it will not go up if interest rates rise. If the interest rates are low, like now and as predicted for the next two years, when a person decides to buy a new home, taking advantage of a fixed rate mortgage will protect them if the rates go up shortly.

Easy to Grasp

Fixed rate mortgages are also simple to understand. The rate is set based on current market prices, and will not change for a set period of time. At the end of the fixed rate term, if interest rates have dropped, then the new monthly payments may be lower than they were during the fixed term. This can help owners save money in the future. However, rates may go up during the fixed rate term, but it isn't necessarily a disadvantage. If the rates go up, the owner can look around and refinance their home at the lowest rate available, saving them more money than if they were to continue with their current loan.

Fixed rate mortgages can help a new homeowner guarantee that their monthly payments will remain the same over a set period of time. They will not have to worry about changing interest rates, and will not have to worry about their monthly payments getting so high that they cannot pay their mortgage.

Latest Articles

What is the Average Cost to Repair a Foundation?

The most important part of any structure is the foundation, considering that it gives support to everything above it and ensures that the structure...

on Apr 26, 2022

6 Favored Methods for Foundation Waterproofing You Should Know

If you have ever walked down to your basement and noticed a small trickle of water or a small puddle on the floor, you may dismiss it as no big...

on Apr 24, 2022

7 Great Hacks For People Who Hate Doing Chores at Home

Count yourself lucky if you find cleaning and doing chores therapeutic. For the rest of the population, doing chores can be one of the most...

on Apr 12, 2022

Driveway Drain - Why is it Important for Safety

A driveway is often our first impression of a home. It tells people how we want them to feel when they're welcomed in. That's why it's important to...

on Apr 1, 2022

7 Tips for Choosing Your Bathroom Doors

Replacing the door is an excellent starting point when doing bathroom renovations. However, with the various door types in the market, choosing the...

on Mar 31, 2022

Sponsored Articles

Actions

More DIY Articles

Things to Do Before Buying a Blind

Blinds and shades have been very popular these days. They are used for aesthetic and practical benefits. More and more individuals are so into them...

Windows / Siding

How to Find Cheap High Quality Tiles

Honestly, when it comes to tile work in the home, only an experienced eye can detect the difference between artistic and functional and just plain...

Floors / Tile / Hardwood

7 Self Storage Tips That Are Always Handy

If you are looking for self-storage, you are in luck! There are lots of amazing self-storage facilities around these days with different features....

General Household

Top 5 Tips for Choosing the Right Vinyl Siding

Choosing vinyl siding for your home may seem like an obvious choice. Vinyl siding is well-known for its longevity and ease of maintenance, not...

Floors / Tile / Hardwood

The A1 Herty Gerty: Do I need one or not?

No matter whether you’re a long-running business or starting afresh, having the right piece of kit to complete your tasks is essential. And when it...

Safety / Security

Contact Us | Submit Article | 411homerepair © 2022