welcome to: NapaColdwellBanker.com
Coldwell Banker
Brokers of the Valley
|
Info: Fixed Rates Mortgages
|
Inflation protection.
If interest rates increase, your mortgage and your mortgage payment won't be
significantly affected. Even if your taxes or insurance costs go up over time, your
basic loan payment (principal and interest) will stay the same. This is especially
helpful if you plan to own your home for five or more years.
Long-term planning.
You know what your monthly housing expense will be for the entire term of your
mortgage. This can help you plan for other expenses and set long-term financial
goals for yourself and your family.
Low risk.
You always know what your payment will be, regardless of what current interest
rates are. This is why fixed-rate mortgages are so popular with first-time buyers.
Your mortgage interest rate won't go down, even if interest rates drop, unless you
refinance your mortgage.
Because the interest rate is generally higher than other types of mortgage loans,
you may not be able to qualify for as large a loan with a fixed-rate mortgage.
Your total monthly payment can occasionally increase based on changes to your
taxes and insurance. In many cases you pay these costs through an escrow
account that your lender keeps for you.
Fixed-Rate Mortgages
Fixed-rate mortgages are the most common mortgage for many homebuyers
because the monthly payments are stable. The interest rate you lock-in will be the
same interest rate you pay for the life of the loan - whether it's a 15-year or 30-year
mortgage.
What are the benefits of a fixed-rate mortgage?
There are additional considerations to be aware of with fixed-rate mortgages:
