| With fixed rate mortgage, the payments made are fixed to a particular amount for a fixed time period. This amount is decided on by the mutual consent of the lender and the borrower. Fixed rate mortgage gives the borrower peace of mind as he will be paying a fixed amount even if there is an unexpected interest rise.
The time period for this mortgage can be for a couple of months or even for a couple of years. But one must remember that although you might be paying a fixed amount for maybe 20 years, the amount of interest that you will pay will also be higher. And of course, you will have keep paying your monthly permanents for a longer duration of time. However, if the interest rates fall due to some reason, you will have to continue paying the fixed amount. So you will not see a decrease in your monthly payments. Of course by the end of the fixed term, you payment will come according to the standard rate.
About a few decades ago, people did not think below a 30 year fixed rate mortgage. Borrowers still offer 10, 15, 20, 25 and 30 years of fixed rate mortgage. The 30 year fixed rate mortgage offers the lowest payment of amount but for a longer duration which means that you pay more of interest as well. The faster you finish paying your mortgage payments, the less amount of interest you are likely to pay. If the fixed rate mortgage has been fixed for just a couple of months, it should be remembered that your payment will come back to rate set by the lender initially.
With us, you will get the benefit of getting the best fixed rate mortgage at competitive rates. There are a whole lot of companies that are available today that provide different rates. But if you are looking for someone who will understand your needs and requirements you search has ended here.
If you apply for one of our fixed rate mortgages, we can give you all the information you need to help you decide which of our mortgages is right for you. |
