An Insight into Fixed Rate Mortgages
For long-term dwellers, fixed rate mortgages are an excellent way to guarantee fixed monthly mortgage payments without worrying about inflation. For those who’re planning their budget through consistent mortgage payments, we offer a complete insight to fixed rate mortgages and how they work.
Fixed rate loans are offered at different rates (ranging from 10% to 30%), which remain unaltered. When buying a house or considering refinancing, most homeowners opt for fixed rate loans as they ensure consistent monthly payments.
Such loans offer homeowners a peace of mind. As the rate never changes, you can plan your monthly budget to incorporate a fixed amount of cash outflow every month for mortgage payments.
If you are planning to own your home for the long run or are refinancing to raise money for capital improvements in your house, then such loans provide the necessary finance to maintain and upgrade your home, fix all leakages and make other changes.
A 30-year fixed-rate mortgage carries nominal loan repayments that remain the same, throughout the mortgage term. This means that your payments will never increase with the passage of time.
Similarly, there are 20-year, 15-year and 10-year fixed rate loans available. Apart from guaranteeing fixed mortgage repayments, such loans allow you to:
Refinance your primary home’s value by up to 95%
Buy another primary residence with a down payment as low as 5%
Raise any amount of loan, ranging from $50,000 to $300,000, to buy a home
Fixed rate mortgages work in a manner similar to specialized commercial loans. The monthly payments are based upon the principal loan amount raises, the interest rate and the amortized interest over a span of 10, 15, 20 or 30 years - depending upon the type of mortgage program you choose.
As mentioned time and again, the monthly payments will not change throughout the life of the loan. This means that you do not have to worry about rising interest rates in the open market, inflation or even unfavorable market conditions.
Finally, fixed rate loans allow you to make your payments at your own will, without incurring any penalties on pre-payments.
Call of our highly Experienced Mortgage Professionals at 1-800-311-8040, or apply now online with our simple Full online application.