| Fixed Rate loans have long been the industry
standard. These programs offer an interest rate that is fixed
for the life of the loan. If your monthly payments contain
taxes and insurance, your may see an annual increase as these
premiums adjust, however the principal and interest payment
will remain fixed.
Fixed rate mortgages are available for 10 years, 15 years,
20 years, 30 years and now are even available for 40 years.
Benefits of a Fixed Rate Loan:
- Stability – the payment is fixed for the life of
the loan.
- The payments are structured to repay the loan by the end
of the term.
Draw Backs:
- These loans do not always offer the lowest rates possible.
- They do not offer the payment flexibility associated with
other loan programs.
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