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Return to our home
page and start searching for other home loan
topics. |
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Fixed Rate Loans |
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Is a Fixed Rate Mortgage
Always Your Best Choice? |
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It's well known that the Fixed Rate mortgage is still the
the most popular home loan originated in today’s market and
with very good reason. This type of mortgage loan provides a
consumer with a guarantee of a
fixed rate and a
consistent monthly payment for the
entire term of the loan.
(common terms are 15 and 30 years with many lenders also
offering terms up to 40 years). However, should you
consider other loan options? Scroll below to read more
about fixed rate home loans. |
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| Advantages |
Fixed rate
mortgages provide a number of tangible benefits
over adjustable rate and hybrid home loan
options. These advantages include:
- Long Term
Interest Rate Security
- Consistent
Monthly Payments
- Automatic
Principal Reduction
- Flexible Down
Payment Requirements
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Disadvantages |
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Many home loan professionals
believe there are no disadvantages with a fixed rate
mortgage however
by simply comparing programs to programs one
extremely important variable is not factored in - the
Homeowner.
Because of this
variable it can also be argued that fixed rates
do not provide the greatest advantage for some
homeowners. Remember, this is a false
statement for the majority of homeowners however
there are still a quite a few people who have:
- Great Self
Discipline
- Opportunity
and Affordability to Assume Risk
- A Stable
Income Environment
- Short Term
Homeowners with Realistic Timeframes
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Questions
to Ask |
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We try to group
all questions for home loan programs into two
(2) categories. |
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Ask Yourself... |
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Are you comfortable with today's interest
rates?
How much lower do you think they can go - or
will they only continue to rise?
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Is the subject property a long term home
or just a transitional place until you can
afford more? If so, what's your
timeframe for increasing your income?
Is it realistic or even possible?
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Can you afford the payments for a fixed rate
mortgage?
More importantly, could you afford the
payments of a higher fixed rate should you
start with an adjustable and become subject
to future interest rates?
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Ask Your Lender... |
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Difference in rates and monthly payments
between a fixed rate mortgage and adjustable
rate programs
- What
advantages are there to paying points?
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About
Fixed Rate Mortgages with Interest Only
Options. This may be an
alternative where you can realize the
security of a fixed rate but have an option
to make interest only payments when your
budget needs it.
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Mortgage Calculators. |
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Learn how much you can afford
with our set of mortgage calculators. |
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Calculate
Payments |
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