A new home is definitely one of the most exciting times life has to offer, and if you’re in the process of getting your first home you know exactly how exciting and challenging this time can be! One of the biggest decisions will be whether to get a fixed rate mortgage or an adjustable one.
While there’s plenty of advice given against adjust rate mortgages, most people do not stop and mention the benefits of a fixed rate mortgage. This guide strives to cover the benefits of a fixed rate mortgage so that you can make the best decision for your own unique situation.
One of the biggest benefits of a fixed rate mortgage is that the mortgage payments are static. They will not increase over time the way they can with an adjustable rate mortgage, which means that you always know what to expect from month to month. Now, this doesn’t mean that you can’t pay more than your monthly mortgage payment to bring the overall principal down, but if you need to keep a tight budget a fixed rate mortgage helps you do just that.
Another benefit is that a fixed rate mortgage gives you more time to actually pay off your mortgage. Instead of having to take a mortgage with a shorter term, a fixed rate mortgage gives you 30 years to repay the loan to the bank which makes your payments much smaller than with adjustable rate mortgages that expire much sooner.
Is a fixed rate mortgage really right for you? If you’re focused on building a solid budget that can be flexible enough to get you through all the twists and turns of life, then a fixed mortgage is definitely right for you. Your loan officer can discuss a fixed rate mortgage in greater detail that can get you even closer to the home of your dreams!