Is a fixed-rate mortgage right for you? The answer depends on several factors, including current rates and the loan’s term limits. At HUNT Mortgage, we are here to help you analyze your situation and determine whether a fixed-rate loan is the best financial decision for you — in the short and long term.
Many homebuyers’ preferred choice.
Fixed-rate mortgages are the most popular type of loan that homebuyers choose, and for good reason. These loans offer the security of a locked-in interest rate, meaning that as long as your insurance doesn’t change, you will make the same payment each month.
A fixed-rate loan provides security that adjustable-rate mortgages and other types of loans cannot. Because your interest rate is fixed, you won’t have to worry if rates rise. And because your monthly payments will remain the same, you’ll be able to more accurately budget your resources.
Is a 15-year or 30-year fixed-rate loan right for you?
This depends on how much money you have saved up and how long you intend to stay in your home. With a 15-year loan, your monthly payments will be significantly higher, but you’ll pay much less in interest over time and your rate will be lower, saving you money in the long run.
With a 30-year loan, you’ll pay more in interest over time and have a higher rate, but you will benefit from lower monthly payments, which may leave you with more money available for other expenses and financial goals — such as saving for retirement or a child’s college tuition. If you plan to stay in your home for a long period of time, a 30-year term limit might be your best option.
Our team can help you navigate fixed-rate loans.
Making the right mortgage decision requires careful consideration and comparisons. Our Mortgage Consultants will help you determine if a fixed-rate mortgage is right for your financial goals and whether a 15-year or 30-year loan is best for your budget. Contact us today or request a quote to get started.