Smart People Get Smart Mortgages
Homeownership can be a great experience if you approach it the right way. One easy step you can take to make sure you protecting yourself is get a fixed rate loan. A loan that is fixed for the entire length of the loan. Here are few reasons I feel are some of the major benefits to a fixed rate mortgage.
Security: With an unpredictable economy and job stability questionable it is time to play it safe if you havent been already. Home prices are falling and if you are in an adjustable rate loan that your fixed term is about to end now is the time to act. Your mortgage is one of your largest financial obligations and will be so taking steps to ensure your financing is safe and your loan will not change on you or put you into a situation that will leave you helpless is the right move.
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 Mortgage Balance: Remember the days when people actually paid off their loans?!? The way they did was by getting an affordable fixed rate loan on a mortgage amount that was in their comfort zone and holding on to the loan until they paid it off. I have said this before but I feel compelled to reminder people; mortgage interest is frontloaded. This simply means that the mortgage lender piles the majority of the interest on your loan onto the first few years of your payment. Interest is NOT spread out evenly over the life of the loan. Here is a simple example. If you have a $2000 mortgage payment in your 1st payment about $1980 dollars will be applied towards interest. On your last payment $1980 will be applied towards your principal balance. The moral of the story is to get into a fixed loan so you only pay the first few years of interest heavy payments once. If you keep getting short term ARMs and refinancing you are starting all over every time you do that.
Mortgages are a big investment. You may have a circumstance where an adjustable rate mortgage makes sense for you. Overall, fixed rate loans are safe for everyone.
Borrow safe! Your house should be fun not stressful.
Security: With an unpredictable economy and job stability questionable it is time to play it safe if you havent been already. Home prices are falling and if you are in an adjustable rate loan that your fixed term is about to end now is the time to act. Your mortgage is one of your largest financial obligations and will be so taking steps to ensure your financing is safe and your loan will not change on you or put you into a situation that will leave you helpless is the right move.
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 Mortgage Balance: Remember the days when people actually paid off their loans?!? The way they did was by getting an affordable fixed rate loan on a mortgage amount that was in their comfort zone and holding on to the loan until they paid it off. I have said this before but I feel compelled to reminder people; mortgage interest is frontloaded. This simply means that the mortgage lender piles the majority of the interest on your loan onto the first few years of your payment. Interest is NOT spread out evenly over the life of the loan. Here is a simple example. If you have a $2000 mortgage payment in your 1st payment about $1980 dollars will be applied towards interest. On your last payment $1980 will be applied towards your principal balance. The moral of the story is to get into a fixed loan so you only pay the first few years of interest heavy payments once. If you keep getting short term ARMs and refinancing you are starting all over every time you do that.
Mortgages are a big investment. You may have a circumstance where an adjustable rate mortgage makes sense for you. Overall, fixed rate loans are safe for everyone.
Borrow safe! Your house should be fun not stressful.
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
11:22 AM
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