The traditional fixed rate mortgage is the most common type of loan program, where monthly principal and interest payments never change during the life of the loan.
Fixed rate mortgages are available in terms ranging from 10 to 30 years and can be paid off at any time without penalty. Fixed-rate mortgages are very popular because the interest rate and monthly payments are constant. Fixed loans are generally amortized over ten, fifteen, twenty or thirty years.
A fixed-rate mortgage is generally preferred when the interest rate is relatively low and if one intends to keep the property for more than five to seven years.
Generally, you'll find that fixed rate mortgages are the right choice if:
• Interest rates are low.
• You can afford the payment for the house you want.
• You need to budget for monthly payments, and predict them.
• You will keep your home for a relatively long period of time.
The key benefit of a fixed product is predictability. Your rate and payment do not change which makes budgeting a breeze with the added benefit of locking in a low rate for as long as 30yrs.
Fixed-Rate Mortgage (FRM) Benefits:
Borrowers gravitate toward fixed-rate mortgages in-lieu-of adjustable-rate mortgages because they like the security of knowing exactly how much they will pay per month for principal and interest.
The interest rate is fixed, so if overall interest rates increase, it does not affect the fixed-rate borrower. Likewise, if overall interest rates decrease, the borrower's payment still remains the same unless the borrower chooses to refinance the mortgage into a lower rate.
We'll save you more money. We can offer you low interest rates in comparison to our competitors. We helped hundreds of thousands of people find the perfect home loan option for them, with a 96 percent satisfaction customer rating too!
Contact our local office at (289) 401-0005 for more details regarding the FRM program and find out how one of our personal Mortgage Agents can help you with a loan that matches your unique needs. Find out how we can get you to a better place.