Fixed Rate Mortgages in New Jersey
When trying to decide between mortgage loan options, ask yourself the following questions;
- Do I plan on keeping this home or mortgage for at least 10 years,
- Would I enjoy the comfort of knowing my interest rate will never change,
- Do I prefer that my mortgage payment remain the same for the life of the loan,
If you answered “yes” to any of these questions, chances are a Fixed Rate Mortgage may be right for you.
As the name implies, a Fixed Rate mortgage means the rate of interest you are charged on the outstanding loan balance will remain “fixed” for the life of your loan. In other words, you will know exactly what the payment will be each month, and that it will never change despite market rate fluctuations.
Benefits of a Fixed Rate Mortgage:
- Interest Rate remains the same for the life of the loan
- Monthly payment remains constant
- No pre-payment penalty allows you to pay the loan off early
Because of these benefits, Fixed Rate mortgages are among the most popular mortgages nationwide.
Fixed rate mortgages come in a variety of terms: 30 year, 25 year, 20 year, 15 year and 10 year fixed terms. The most popular term for a fixed rate loan is 30 years. This is because a 30 year fixed loan produces the lowest payment among the terms available. In short, the longer the term is the lower the payment will be.
You might consider a fixed rate loan if,
- Your household income is based on a level salary or fixed income ( retirement income )
- You have a low tolerance for interest rate risk
- You prefer to set a monthly budget
Find out if a Fixed Rate Mortgage is right for you
Call or email a local American United Lending Professional today.
