Fixed Rate Mortgages

THE BEAUTY OF FIXED-RATE MORTGAGES

Fixed-rate mortgages have unchanging interest rates throughout the entire duration of the loan. The payment per month stays constant. Normally, briefer loan periods have more appealing interest rates.

The amounts paid on fixed-rate, complete remuneration loans are computed such that the payment is complete at the close of the mortgage term. The initial repayment phase of the loan, a huge part of the payment per month covers for the interest. As the term progresses, a larger chunk of the payment per month is directed at the principal.

30-year fixed-rate mortgages are the most prevalent kind as long as mortgagors can take advantage of the lower payment rates.

Some of the benefits of this type of mortgage include:

  1. Less payments per month as compared to the 15-year kind
  2. Steady interest rate regardless of general spike in interest rates
  3. Fixed amount to be paid per month for the entire 30-year term

However, 30-year fixed-rate mortgages have the following disadvantages:

  1. Greater interest rates compared to the 15-year kind
  2. Constant interest rate regardless of general drop in interest rates

15-year fixed-rate mortgages permit mortgagors to complete the payment of their debt faster and leverage on a lower and more alluring interest rate.

The benefits include:

  1. Lesser interest rates than the 30-year kind
  2. Equities can be built quicker
  3. Steady interest rate regardless of general spike in interest rates
  4. Fixed amount to be paid per month for the entire 15-year term

The downsides of 15-year fixed-rate mortgages are:

Greater payments per month compared to the 30-year kind.

Constant interest rate regardless of general drop in interest rates

At True Path Loans, our satisfaction lies in offering our customers a first-rate mortgage experience through the use of a clear and methodical system that ensures that mortgagees arecompeting for your business. More enlightened customers are more likely to choose our services on carefully comparing our facilities with those of competing mortgage providers. But you don’t have to take our word for it. Look at what our clients have to say about our service!