I Want a Fixed Mortgage Heres Why
Of all the loan products that are available here are a few tips (possibly opinionated tips) on what loans you should be looking at for your new home or refinance.
Security: While traditionally the real estate market is a safe investment in the past half decade it was very lucrative there are lows in every industry that you want to protect yourself for. If you are planning on being in your home for the long haul you need to make sure you have the proper financing that will allow you be protected against market down turns. Real estate is a long term investment and the best to protect your investment during times when the credit markets are tightening and we are experiencing dips in value is to be in a fixed rate mortgage.
Cheap money: The current mortgage market has great rates right now. Fixed products have been below adjustable rate products to promote better lending and a more stabile economy moving forward. Rates are lower than they have been in years so it is a great time to take advantage of some great deals.
Protection Against Market Swings: A mortgage really needs to be looked at as a long term investment. Just like investing in Mutual Funds your mortgage should be bale to weather temporary dips in the real estate market without putting you in any financial danger. The long term health of a real estate investment is one of the most sound investments you can make. Even with the dips in the market like we are experiencing right now if you can hold on to your property for long enough you will make money. Period. A fixed loan that is fixed for the entire duration of your loan term is the best way to not have to worry about the current market highs and lows. You can just sit back and enjoy your home.
Paying off Your Principal Balance: If you were the habit of refinancing every few years it may be time to get into something you really like and stick with it. The simple reason. Mortgage interest is front loaded. What that means, simply put, is that you pay the majority of your interest to your mortgage lender in the first few years of your loan. Mortgage interest is not evenly distributed throughout the life of your loan. If you have a fixed rate mortgage you will not have to worry about refinancing down the line after years of frontloaded interest and you can work towards building equity and owning your home free and clear.
The reasons about are some of the major reasons to get a fixed rate mortgage. In summary, it is just a safer option given that we cannot predict the future.
Good luck with your home financing!
Security: While traditionally the real estate market is a safe investment in the past half decade it was very lucrative there are lows in every industry that you want to protect yourself for. If you are planning on being in your home for the long haul you need to make sure you have the proper financing that will allow you be protected against market down turns. Real estate is a long term investment and the best to protect your investment during times when the credit markets are tightening and we are experiencing dips in value is to be in a fixed rate mortgage.
Cheap money: The current mortgage market has great rates right now. Fixed products have been below adjustable rate products to promote better lending and a more stabile economy moving forward. Rates are lower than they have been in years so it is a great time to take advantage of some great deals.
Protection Against Market Swings: A mortgage really needs to be looked at as a long term investment. Just like investing in Mutual Funds your mortgage should be bale to weather temporary dips in the real estate market without putting you in any financial danger. The long term health of a real estate investment is one of the most sound investments you can make. Even with the dips in the market like we are experiencing right now if you can hold on to your property for long enough you will make money. Period. A fixed loan that is fixed for the entire duration of your loan term is the best way to not have to worry about the current market highs and lows. You can just sit back and enjoy your home.
Paying off Your Principal Balance: If you were the habit of refinancing every few years it may be time to get into something you really like and stick with it. The simple reason. Mortgage interest is front loaded. What that means, simply put, is that you pay the majority of your interest to your mortgage lender in the first few years of your loan. Mortgage interest is not evenly distributed throughout the life of your loan. If you have a fixed rate mortgage you will not have to worry about refinancing down the line after years of frontloaded interest and you can work towards building equity and owning your home free and clear.
The reasons about are some of the major reasons to get a fixed rate mortgage. In summary, it is just a safer option given that we cannot predict the future.
Good luck with your home financing!
About the Author:
The Mortgage Wizard writes articles geared towards consumer awareness and smart lending practices. Check out some mortgage companies to find out about today's fixed rate mortgages.
posted by Debt Consolidation Loan at
12:26 PM
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