Mortgage Rates Trends
(PRWEB) March 3, 2005 -- Fixed Rate Mortgage (FRM) as the name suggests is a single rate locked – in for the entire term of the mortgage. The terms you can lock in for are usually 10, 15, 20 or 30 years.
How is an FRM better?The initial payment for an adjustable mortgage may seem more alluring but it is only till that. You get a certainty as to what your monthly expense on mortgage will be. It helps you to plan your budget properly. Especially if you are person who gets a fixed take home salary every month, you can make the best use of a fixed rate mortgage.
If the interest rates are low in the market, then you should go in for a fixed rate mortgage. This is because; there are chances that the rates might increase, then you will still have a lower repayment to make very month. Thus you save a lot of money compared to those who have locked in an adjustable rate mortgage. As the base rate changes, the adjustable rates also change accordingly.
The amount of down payment for a fixed rate mortgage is comparatively low. If you plan to stay in the house for many years then this is the right option for you , as you know when your loan will be repaid if you meet the monthly obligations regularly.
In what situations is an FRM not advisable?• If you want to make lower initial payments, you must go in for an ARM.• If you are planning to take a second mortgage• If you plan to refinance• If you plan to stay in the house for a lesser period of time• The markets are volatile and the trends are towards a record low rate in interest.
Thus whenever you take a mortgage you must analyze your financial situation and how you want to repay the loan you have taken. You must have the foresight to guess what the rates are going to be or seek a financial advisors help in this regard.
For more information on mortgage rates you can log onto:http://www.mortgagekb.com
(PRWEB) March 3, 2005 -- Fixed Rate Mortgage (FRM) as the name suggests is a single rate locked – in for the entire term of the mortgage. The terms you can lock in for are usually 10, 15, 20 or 30 years.
How is an FRM better?The initial payment for an adjustable mortgage may seem more alluring but it is only till that. You get a certainty as to what your monthly expense on mortgage will be. It helps you to plan your budget properly. Especially if you are person who gets a fixed take home salary every month, you can make the best use of a fixed rate mortgage.If the interest rates are low in the market, then you should go in for a fixed rate mortgage. This is because; there are chances that the rates might increase, then you will still have a lower repayment to make very month. Thus you save a lot of money compared to those who have locked in an adjustable rate mortgage. As the base rate changes, the adjustable rates also change accordingly.
The amount of down payment for a fixed rate mortgage is comparatively low. If you plan to stay in the house for many years then this is the right option for you , as you know when your loan will be repaid if you meet the monthly obligations regularly.
In what situations is an FRM not advisable?• If you want to make lower initial payments, you must go in for an ARM.• If you are planning to take a second mortgage• If you plan to refinance• If you plan to stay in the house for a lesser period of time• The markets are volatile and the trends are towards a record low rate in interest.
Thus whenever you take a mortgage you must analyze your financial situation and how you want to repay the loan you have taken. You must have the foresight to guess what the rates are going to be or seek a financial advisors help in this regard.
For more information on mortgage rates you can log onto:http://www.mortgagekb.com
Mortgage Rates Trends
No comments:
Post a Comment