Fixed Rate Mortgages
As you probably guess a fixed rate mortgage has just that, a fixed interest rate throughout the life of the loan. When choosing a mortgage program most people choose fixed rate mortgages. The most common is a 30-year fixed rate mortgage. Even though 30 years may seem like a long time, 30-year fixed rate mortgages are not just for young first time home buyers. Fixed rate mortgages are popular among anyone who plans to own their property for an extended period of time.
There are many advantages to a fixed rate mortgage. With a fixed rate mortgage, you know exactly what your mortgage payment is going to be every month for the entirety of your loan. A fixed rate mortgage allows for a sense of stability, whereas an adjustable rate mortgage’s interest rates are subject to change. If you are fortunate to be buying your home when fixed interest rates are low, you will have a low fixed rate in the future even if interest rates spike.
A fixed rate mortgage is the right choice for a lot of people. They provide a buyer with a sense of security in the ownership of their home. As a potential home buyer you have a lot of options and decisions ahead of you. The purpose of your property is very important when choosing your mortgage program. Feel free to contact United Home Loans with any questions you have about the different mortgage programs which may be available to you.