Fixed Rate Mortgage

Is a fixed rate mortgage right for you?

A fixed rate mortgage is possibly the most common type of home mortgage loan in the country. Most people understand the concept, it's easy setup and allows homeowners to know exactly what  their financial commitment will be each month before committing to the mortgage.

It has one major  benefit over all other types of mortgages and that is stability. No matter what happens with interest rates in the future,  you are guaranteed a set monthly payment for the entire term of your home loan.

This provides borrowers with peace of mind because they do not have to worry if their next mortgage payment will be higher than the previous one.

Some people are very meticulous when it comes to paying their bills and they  don’t want to feel
like they are gambling on interest rates.

This is what really make a fixed rate mortgage so appealing. The payments won’t change so you have a much better chance of being able budget for vacations education and medical expense etc.

Most banks that provide a fixed rate mortgage will give you the option to pay-off some of the principal early without incurring penalties. This can be an excellent way to pay off the mortgage early or decrease the monthly payments.

The interest rate you get on a fixed rate mortgage depends on the prevailing interest rate at the time. It's important to shop around as interest rates can vary and significant savings can be achieved over the tern of the loan if you can get the best rate available.

 


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