Fixed Rate mortgage
When you are purchasing a new home there are so many unpredictable
factors why should your mortgage rate be just as unpredictable?
A fixed rate mortgage is a simple solution to that. You will
always know what your payment will be. Your interest rate
stays the same throughout the length of your mortgage. The
state of the market recently shows how the rates can change.
Luckily for us, it has been a downward trend, but just as
easily it could go in the reverse direction.
If you don’t want to be at the mercy of the market,
then choose a fixed rate mortgage. Similarly, at times like
these, when the mortgage rates are low, it is the perfect
time to lock in a low rate on a fixed mortgage.
National City Mortgage offers a variety of fixed rate mortgage
options for those who want the security and stability of consistent
mortgage payments. Most often people choose from a 15-or 30-year
mortgage term. This insures that the rate of your mortgage
will not change for this set amount of time, unless you decide
to refinance for a lower rate at any time.
Whether you choose a 15-or 30-year loan depends on how much
you want to spend, the cost of your home and your financial
status. Obviously a 30-year loan is much longer and will allow
you to incur much lower monthly payments since they are extended
over twice the time of a 15-year loan.
A 15-year loan makes sense if you can afford to pay higher
monthly payments and thus obtain faster equity on your home,
since it will be paid off faster. This will make the house
much more valuable to you in a shorter period of time.
When purchasing a home and deciding if you want a fixed rate
mortgage or not consider a few things before deciding: Do
you think interest rates will rise in coming years? Do you
want a consistent payment plan? Do you have a tight budget
for home costs? If you answered yes to any of these questions,
then a fixed rate mortgage may be right for you.