An approved mortgage with fixed interest rate for your home is enough reason to celebrate. Aside from realizing your dream of owning a house, the repayment amount is usually affordable. Industry expert Primary Residential Mortgage, Inc. asserts that a long-term fixed rate mortgage may be slow and steady, but it is the best thing since you are certain on how much to pay every month.
Here are the reasons why you should be rejoicing when approved for a long-term fixed rate home loan.
Interest rate stays the same
The best thing about a 15 or 30-year mortgage with fixed interest rates is that the rate will always stay the same. The same will hold true even if you are living in the midst of a volatile period where markets could cause interest rates to jump. There are those who say you will be on the losing end if market rates go down but the fact is that it has never stayed down for long.
Refinancing options are always available
If you acquired a home through a 30-year mortgage with a fixed interest rate, you should know you have refinancing options available to you. Homeowners can always reduce their mortgage payment or the length of the mortgage through refinancing. Refinancing option also comes in handy when interest rates go down or if prices of bonds go up.
Simple is better
Perhaps one of the most important facets about mortgages with fixed interest rates is its simplicity. You would expect the interest that you pay on day one would be the same rate that you will pay for the duration of the term.
Just like any mortgage or loan types, those with fixed interest rates have their own share of advantages and disadvantages. Nevertheless, the best part about having a mortgage with fixed interest is the amount you pay will always be the same. Not only does this make for better computation but also helps you in making a budget for the coming months.