A fixed-rate mortgage keeps the interest rate fixed throughout the loan term. This is the direct opposite of an adjustable-rate mortgage (ARM) that changes the interest rate regularly.
Global Mortgage Group offers various fixed mortgage loans ranging from 15 to 30 years. Regardless of the length, the rate in all of them remains the same for the entire period.
In the case of a fixed-rate mortgage, if you purchase a home with a 15-year loan and your monthly payment is set at $1,500 in a fixed interest rate, you will be paying exactly this amount throughout the entirety of the loan.
People with a budget who do not want to deal with the sudden surge in interest rates will find this mortgage type ideal for them. However, these borrowers will not be able to take advantage of a drop in the interest rate unless they choose to refinance to modify their terms. A fixed-rate mortgage is also a good option for people who intend to live in the same house for the rest of their life. By paying a small monthly amount, they can eventually own the house when the mortgage period is over.
- Global Property Investor – U.K. House Prices Surge 3.4% as First-Time Buyers Re-enter Market
- Unlock Immediate Liquidity with Singapore Real Estate Bridging Loans from Global Mortgage Group (GMG)
- Q&A: Dubai Property – Where to Buy and Why
- Why do you “have to” own where you live?
- Global Property Investor – Vancouver Home Sales Surge 28% Despite Persistent Affordability Issues
