A Mortgage Rate You Can Count On

After 9-11, it seems like a lot of things in life are uncertain. It is hard to rely on anything or trust in anyone, and stability is sought much more often than it’s found. It is comforting to know that there are a few things still reliable, and traditional mortgage rates are one of those things on which you can always rely.

The most classic type of mortgage is a fixed-rate mortgage, one that guarantees you that your mortgage rate will not change. The fixed-rate mortgage has a set interest level and a set principal fee, so you pay the same amount each and every month of every year until your loan is paid in full.

Even when homeowners insurance, property taxes or other fees change, your mortgage will not. Whether you choose a ten year, 15 year, 20 year or 30 year loan, your mortgage payment will be the same on a consistent basis until it is completely paid off in full.

You can also opt for the bi-weekly fixed rate, which allows you to pay half of (what would be) the monthly payment every two weeks. By doing this you will pay the loan off faster.

The most common fixed loans are for 15 and 30 year spans, but you should choose the length of your loan by deciding how long you will be in your home and how long you really need to pay it off. The advantage of a shorter-term loan is that you will be given a lower interest rate. Most of the initial payments go more towards interest, so if you have a shorter loan you will ultimately be paying less over the long term.