What is a Fixed Rate Mortgage
Cary, NC
The traditional 30-year fixed-rate mortgage has a constant interest rate and monthly payments that never change.
This may be a good choice if you plan to stay in your home for seven years or longer. If you plan to move within seven years, then an adjustable rate loan may be a cheaper option.
FIXED MORTGAGE RATES CARY NC
Mortgage Broker Fixed Rate Loans
Hands down, the fixed rate mortgage is the safest decision when it comes to choosing your mortgage program. You can get an adjustable mortgage and take the risk that the rate might go up before you move or pay it off, or... you can take a fixed rate mortgage and rest assured that your mortgage payment will not change for the entire time you have it.
Fixed Rate Mortgages come in a variety of lengths, or terms, ranging in 5 year increments from a 5 year fixed rate mortgage, all the way up to the 30 year fixed rate which is the most common length of time to pay back a mortgage.
FIXED RATE MORTGAGE vs ADJUSTABLE MORTGAGES
What is the difference between a fixed-rate and adjustable-rate mortgage loan?
The difference between a fixed rate and an adjustable rate mortgage is that, for fixed rates the interest rate is set when you take out the loan and will not change. With an adjustable rate mortgage, the interest rate may go up or down.
Part of the interest rate you pay will be tied to a broader measure of interest rates, called an index. Your payment goes up when this index of interest rates increases. When interest rates decline, sometimes your payment may go down, but that is not true for all ARMs. Some ARMs set a cap on how high your interest rate can go. Some ARMs also limit how low your interest rate can go.
Know how your ARM adjusts. Before taking out an adjustable rate mortgage, find out:
- How high your interest rate and monthly payments can go with each adjustment
- How frequently your interest rate will adjust
- How soon your payment could go up
- If there is a cap on how high your interest rate could go
- If there is a limit on how low your interest rate could go
- If you will still be able to afford the loan if the rate and payment go up to the maximums allowed under the loan contract
Choosing the Best Loan Program Begins with Choosing the Best Loan Officer
You can't be expected to learn everything about every program and know exactly which mortgage program is right for you.
That's your loan officer's job to do that for you!
We take care to review your information and determine which programs you qualify for and the pros and cons of each so we can share it with you and help you make the right the choice for yourself.
Click below to get started today.
We'd love to hear from you!
MortgageBroker.Pro
The Source for Connecting Home Buyers with
Reliable Trusted Mortgage Experts
Why waste time searching for mortgage companies, mortgage brokers, mortgage lenders and banks? We will connect you with a trusted expert loan officer in your area.