A fixed-rate loan features the same payment amount for the entire duration of the loan.
The property taxes and homeowners insurance will go up over time, but for the most part, payment amounts on these types of loans change little over the life of the loan.
When you first take out a fixed-rate mortgage loan, most of your payment is applied to interest. The amount paid toward principal increases up slowly each month.
You can choose a fixed-rate loan in order to lock in a low rate. Borrowers choose fixed-rate loans when interest rates are low and they want to lock in this low rate.
If you have an Adjustable Rate Mortgage (ARM) now, refinancing with a fixed-rate loan can provide greater monthly payment stability. If you have an Adjustable Rate Mortgage (ARM) now, we'll be glad to assist you in locking a fixed-rate at a good rate. Call LORD MORTGAGE & LOAN INC. at 561-353-5858 to discuss how we can help.
Lord Mortgage & Loan - Millions To Lend - Creative Financing!
6971 N. Federal Highway; Suite 103
Boca Raton, FL 33487 Phone (561) 807-9001