You have a lot of different options when it comes to financing your home purchase. From FHA to conventional, to VA to jumbo; however, it all boils down to fixed-rate versus adjustable rate. Depending on your financial situation, your goals, and your plans and timeline for owning your home, selecting between these two mortgage types can be an even more important decision.
Mortgage Interest Rates Cannot Change
A fixed-rate mortgage offers precisely what it says, a fixed, permanent rate. This means that for the life of your loan, whether it be 10,15,20, or 30 years, the interest rate will not change.
Very Beneficial When Rates are Lower
During climates of lower interest rates, locking in a low rate is very beneficial. This means that you don’t have to worry about missing out on lower opportunities and corresponding savings. You are locked into an advantageous rate and don’t have to be concerned about greener pastures or a rate hike.
Monthly Payment Obligations of Principal and interest will not Increase
With a fixed interest rate, you know that your principal and interest monthly payment will not change. At the same time, you can always pay additional funds toward the principal of your mortgage. It is important to know that your escrow amount, which is made up of your homeowner's insurance and estimated property taxes can increase, making your monthly payment higher, but the amount you pay towards your interest will not grow.
When you select the right mortgage loan officer, you can rest assured that you will be led in the right direction to achieving your financial and home-owning goals. For over 90 years, the expert staff at Standard Mortgage (NMLS# 44912) has been helping people realize the dream of homeownership.