Is A Fixed Mortgage Rate For You? - part 1
by Silent One ...
Deciding to buy a home is a tough enough decision, but deciding if you want a fixed mortgage rate shouldn't be. Fixed mortgage rates are interest rates lenders charge you through the course of your loan. A fixed rate is a rate that will stay the same throughout the time of your loan, whereas an adjustable mortgage rate fluctuates with the current interest rate. So, when is it smart to have a fixed interest rate? And, how does it effect your loan?
A fixed mortgage rate is a great thing to have if you are buying or entering into the loan at a time when interests rates are low and probably going to rise. During the length of the loan, a fixed rate would remain the same low rate it is now. But, it can work against you as well. For instance, if the interest rates lowers after your loan is in progress, you stand to lose money.
Currently, the interest rates are low and will begin to climb as the economy grows and gets stronger. Now, that's not to say they won't ever come back down, because they will, but there is no time frame to this happening. So, while interest rates are low, it might be a good time to enter into a 30-year fixed mortgage rate.
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Is A Fixed Mortgage Rate For You?
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