The traditional fixed rate mortgage is the most common type of loan program, where monthly principal and interest payments never change during the life of the loan. Fixed rate mortgages are available in terms ranging from 10 to 30 years, and can be paid off at any time without penalty.
It’s useful to have a fixed rate mortgage because you always know how much you will be paying monthly. Fixed loans are generally amortised over ten, fifteen, twenty or thirty years.
A fixed-rate mortgage is generally preferred when the interest rate is relatively low, and when you intend to keep the property for more than five to seven years.
Generally, you'll find that fixed rate mortgages are the right choice if:
Interest rates are low.
You can afford the payment for the house you want.
You need to budget for monthly payments, and predict them.
You will keep your home for a relatively long period of time.
The key benefit of a fixed product is predictability. Your rate and payment do not change, which makes budgeting a breeze. You also have the added benefit of locking in a low rate for as long as 30 yrs.
Fixed-Rate Mortgage (FRM) Benefits:
Most people prefer to know exactly what their monthly payments will be. Having a “Fixed Rate Mortgage” provides this security. When you have a “Fixed Rate Mortgage”, you will not be affected should the interest rates rise above your current rate. The downside of this is that your rate will remain the same, even if interest rates go below your current rate,, unless you choose to refinance the mortgage into a lower rate.
We'll save you more money. We can offer you low interest rates in comparison to our competitors. We’ve helped thousands of people find the perfect home loan option for them, with a 96 percent customer satisfaction rating, too!
Contact us at (778) 400-9868 for more details regarding the FRM program, and learn how one of our personal Mortgage Consultants can help you with a loan that matches your unique needs. Find out how we can get you to a better place.
YYJ Victoria Mortgage Team 6 4440 Chatterton Way, Victoria, BC, V8X 5J2