Top 3 Reasons To Consider A Fixed-Mortgage
Experience Peace of Mind
One of the benefits of a fixed mortgage is the predictability that comes with it. With a fixed mortgage, you lock into a set rate and set payments. You’ll know exactly how much you’ll pay in interest and principal during the length of the term.
Set and Stick to a Plan
We understand that borrowers with a specific budget want to avoid any unexpected monthly payments. A fixed rate mortgage can help you plan exactly how you’ll manage your loan and your budget. You’ll also want to factor your income and potential increase in earnings into your plan. If you won’t be able to handle a rough patch during a fluctuating rate, a fixed rate is a good option.
Consider Individual Factors
Various factors come into play when deciding on a loan. One of the things you’ll want to consider is market trends. When interest rates are low, you can lock into these for the length of your term.
Fixed mortgages can also offer a lower interest rate than an open mortgage. This makes it a good option if you don’t plan to pre-pay in full during the term. Depending on the lender, you can pre-pay 10% to 20% of the original mortgage balance each year and find loan terms between 6 months and 10 years.