Fixed-Rate Mortgages are a great option for homebuyers looking for consistency in their monthly payments for the life of the mortgage. Depending on your financial stability, you’ll want to make sure you get the proper length mortgage, so you can make your monthly payments accordingly while also paying the least amount of interest over time.
The positive to a shorter term Fixed-Rate Mortgage is that the overall interest you pay is a lot less in comparison to longer term Fixed-Rate Mortgage, plus the loan gets paid off much quicker. A potential negative to this is your monthly payments will be much higher, so make sure you can afford the higher monthly payments for an extended period of time.
The positive to a longer term Fixed-Rate Mortgage is the lower monthly payment, but the negatives that come with this are that it will take you longer to pay off your mortgage and you may be paying more interest over time. However, if you go with a 30-year Fixed-Rate Mortgage and decide to pay more principal each month, there are no penalties.
Not sure what loan option works best for you? Talk to one of our lenders.
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