Fixed Interest Rate
A fixed interest rate is attractive to borrowers who don’t want their interest rates fluctuating over the term of their loans, potentially increasing their interest expenses and mortgage payments. Fixed rates might apply during the entire term of the loan or for just part of the term, but it remains the same throughout a set period.
A fixed interest rate avoids the risk that a mortgage or loan payment will significantly increase over time. A common reason many people choose FRMs is because they are predictable. Unlike ARMs, whose monthly payments are bound to changing rates, the interest rate on FRMs do not change throughout the life of the loan. This predictability is enough to give peace of mind.
More related readings you might like:
- Fixed Interest Rate Loan
- Tips, FAQs and FYI
- Home buying process – four good reasons, four Easy steps
- Buy or Rent vs. to Buy to Rent
- Home Buying Guide
- How to buy smart a home today – Modern solutions for modern times.
- Which loan is right for YOU in todays markets?
- How foreign nationals loan program helps non-citizen borrowers and gives them the opportunity to invest in real estate in the United States.
- Refinancing – How to secure a better rate and term or get a cash out on your home equity today.