When you borrow money by taking out a loan, you will be paying back this loan with interest. It is the interest that drives how expensive a loan is. There are other fees involved, but the interest rate determines the bulk of the cost of a loan. The higher the interest rate, the higher the costs you will be paying.
So, what is a fixed rate loan?
A fixed rate loan is a loan option that has an interest rate that doesn’t change during the period of the loan. It is widely considered the safest and more popular option. It protects you, the home buyer, against increases in interest rates over the life of the loan. This means you will know what your monthly payment is and that it will not change unless you change the terms of your loan through refinance or other means. Because you monthly payment stability, you can make better budget decisions.
Variable rate loans have interest rates that change as the economy fluctuates. Your monthly payment can change as the market changes.
Fixed rate loans are immune to the ebbs and flows of the economy. You are ensured of consistent monthly payments no matter the changes in the market.
The fixed rate loan is perfect for families looking for their ‘forever home’ and want to avoid the uncertainty that comes with variable loans. With a fixed rate, they don’t have to stress about changes in their monthly payment as the economy goes up or down.
“Interest rate constantly change as the economy fluctuates. Fixed rate loans are immune to these constant changes and your monthly payment remains the same.”
As the economy grows and slows down, the interest rates changes along with the fluctuation. With a fixed rate loan, your loan is immune to these constant change and your monthly payment remains the same.
The lender will use your credit history to determine the fixed interest rate. Or course, the better the credit score, the better the rate and loan terms.
Note that Secure Choice Lending can offer odd amortization terms to your file at your request. You can request 13 years, 19 years, or 27 year. We can process this with no problem.
If you are looking to secure a fixed rate loan, call Secure Choice Lending at 951-733-8925.
A 30-year fixed rate loan is the most popular. But if you prefer shorter term loans, we can look at 20, 15, or even 10 year loans.
We can also add an odd amortization terms to your file at your request. Do you prefer a 13-year loan? 19-year? 27-year? Just ask us and we can look at it closely with no problem.
“Do you prefer 13-year loan? 19-year? 27-year? Just ask and we will help you in any way we can.”
Our Loan Officers will be happy to answer all your questions and discuss your options until everything is clear to you.
Secure Choice Lending is a full service mortgage broker that will secure you a mortgage that doesn’t break the bank.
To streamline the lending experience, our team of financial experts matches consumer needs with the appropriate loan programs and level of risk. With loan officers versed in all mortgage types, solutions to your home-buying questions are a phone call away.