The traditional fixed rate mortgage is the most common type of loan program, where monthly principal and interest payments never change during the life of the loan. Fixed rate mortgages are available in terms ranging from 10 to 30 years and can be paid off at any time without penalty.
It’s useful to have a fixed rate mortgage because you always know how much you will be paying monthly. Fixed loans are generally amortized over ten, fifteen, twenty or thirty years.
Should your intention be to remain in your home for more than five to seven years, a “Fixed Rate Mortgage” is preferable when interest rates are lowest.
Generally, you’ll find that fixed rate mortgages are the right choice if:
- Interest rates are low.
- You can afford the payment for the house you want.
- You need to budget for monthly payments, and predict them.
- You will keep your home for a relatively long period of time.
The key benefit of a fixed product is predictability. Your rate and payment do not change which makes budgeting a breeze with the added benefit of locking in a low rate for as long as 30yrs.
Fixed-Rate Mortgage (FRM) Benefits
Most people prefer to know exactly what their monthly payments will be. Having a “Fixed Rate Mortgage” provides this security.
When you have a “Fixed Rate Mortgage”, you will not be affected should the interest rates rise above your current rate. The downside of this is that your rate will remain the same, even if interest rates go below your current rate.
We’ll save you more money. We can offer you low interest rates in comparison to our competitors. We helped hundreds of thousands of people find the perfect home loan option for them, with a 96 percent satisfaction customer rating too!
Contact our local office at (561) 123-1234 for more details regarding the FRM program and find out how one of our personal Mortgage Consultant’s can help you with a loan that matches your unique needs. Find out how we can get you to a better place.