A fixed-rate mortgage charges a set rate of interest that remains unchanged throughout the life of the loan. Although the amount of principal and interest paid each month varies from payment to payment, the total payment remains the same, which makes budgeting easy for homeowners.
If you are looking for stability and have a solid plan to pay out your mortgage, Fixed-Rate is the choice for you.
Fixed-Rate Mortgages are much easier to budget around, as the monthly payments will be fixed at the same cost.
You will be protected from sudden and potentially significant increases in mortgage payments if interest rises.
Budgeting: You will be able to easily plan around your monthly payment, as it will not vary according to rising rates or changes in the system. You will get exactly what you bargain for.
Rising Rates Protection: You will be protected against sudden increases in your monthly payments if rates increase.
Take Advantage of Rates: With Fixed-Rate mortgages, you can take advantage of fluctuations in Mortgage Rates by "locking in" lower rates by taking the loans while rates are low. This allows you to make really good deals around market events and rates.
You can lock in a bad deal: If current rates are much higher than usual, and the market is seeing an increase in rates, you can end up buying a much more expensive loan than usual, and you will have to re-finance later on to get a better rate.
Higher Initial Interest Rates: Because ARMs have lower initial interest rates, you are initially going to pay comparatively more than ARMs. This means that for buyers that don't have much income right now, but are going to have more later, it's worth less to get a Fixed-Rate Mortgage
A fixed-rate loan may be your best option when:
- You want to lock in a low interest rate
- You want to know how much interest you’ll pay over the life of your loan
- You don’t want to have to worry about refinancing later
But using a fixed-rate loan isn’t always an option. If you have questionable credit or can only only afford a small down payment, you may not be able to qualify for a fixed-rate mortgage. If a fixed-rate mortgage isn’t an option—or if you can qualify for a loan with a higher rate—then you may want to consider another type of mortgage.L
Like with all other Mortgages and loans, a Loan Officer can help you get Pre-Approved for a loan so the lending process can happen smoothly. Water Mortgage is here to help with all your Pre-Approval needs!
Get Pre-Approved for a Fixed-Rate Loan Today!
