Fixed Rate Loan
A fixed rate loan offers predictable, easy to amortize payments and protection against rising interest rates. As the name implies, the interest rate on a fixed rate mortgage is fixed for the term of the loan.rn
rnThe decision to go with a fixed rate mortgage or one with a variable interest will depend upon your personal situation. Fixed rate loans offer the certainty of always knowing what your loan payments will be.
Fixed Rate Loans are especially attractive to…
- Borrowers who like the certainty of a fixed payment for the life of their mortgage.
- Borrowers who are concerned about the impact that rising mortgage rates could have on their mortgage payments.
- Borrowers who lack the financial flexibility to withstand an increase in their monthly mortgage payment.
Fixed interest rate
The interest rate will remain the same from the time of origination to the end of the mortgage loan term.
Protection from rising interest rates
Nobody knows the direction of current mortgage rates; a fixed rate loan protects you from rising rates.
Predictable, easy to amortize payments
Fixed payments bring a level of certainty to your expenses for housing.
Easy to compare different lenders
Fixed rate loans are relatively easy to compare among different lenders when shopping for a mortgage.
Not subject to rising interest rates or changes in the economy
Your interest rate and the other terms of your mortgage are fixed, regardless of the direction of home mortgage rates or what is happening to the economy.
Easy to understand
A fixed rate loan is easy to understand. You don’t have to understand the adjustment triggers or any similar features. The payment and the term are fixed, period.