![]() |
What is a Fixed Rate Mortgage?As the term implies, with a fixed rate mortgage the mortgage rate is fixed for a set period of time, so no matter what movements occur in the lender's standard variable mortgage rate, the borrower's arrangement is fixed and, therefore, so are the monthly fixed rate mortgage payments. A fixed rate mortgage would suit someone who likes to know where they stand. A fixed rate mortgage, as suggested by the name, is a mortgage where equal repayments are made every month. Fixed rate mortgages allow you to easily manage and plan your monthly expenditure - because the payment will be the same every month and you won't be affected by any rises in the base rate. If the interest rates rise above the fixed rate on your mortgage, you will see the real benefits of the fixed rate mortgage. A fixed rate mortgage makes it easy to plan ahead, because as the name suggests, the interest rate on your mortgage stays fixed. This means that as a fixed rate mortgage customer, even if the Bank of England Base Rate changes, the interest rate on your mortgage remains constant over a fixed period of time. This makes your budgeting easier, because you can plan ahead knowing exactly how much your monthly repayments will be. The fixed rate period can be anything between six months and five years, but it's always best to refer to a financial services professional before deciding what period of fixed interest rate to choose. The biggest advantage of a fixed rate is that irrespective of fluctuations in interest rates, your monthly repayments remain the same throughout the period of the fixed rate - usually six months to five years. A fixed rate mortgage is suitable if your mortgage repayments take up a large proportion of your income as it protects you from rises in interest rates. However, you would not benefit from any reduction in the lenders standard variable rate. Fixed rate mortgages generally incur a penalty if redeemed within the fixed rate period. The advantage of a fixed rate mortgage is that you know exactly how much your mortgage will cost, and for how long. If interest rates on your mortgage rise, well the fixed rate will not. Conversely, however, when mortgage rates drop, your fixed rate mortgage will not drop with them. The key benefit of a fixed rate mortgage is that you are able to accurately budget your repayments for a set period of time. In addition, fixed rate mortgages are an excellent option, if it becomes apparent that interest rates may be rising over the coming years, as you can protect your mortgage repayments against rises by choosing a fixed rate mortgage. You may freely reprint this article provided the author's biography remains intact: About The Author John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.
Today's Mortgage, Refinance Rates: May 26, 2023 | Tired of Rising Rates? Blame the Debt Ceiling Debacle Business Insider The Great Pandemic Mortgage Refinance Boom - Liberty Street ... Liberty Street Economics - Compare Today’s Refinance Rates | U.S. U.S News & World Report Money What is mortgage refinancing and how does it work? Yahoo Finance Today's Mortgage, Refinance Rates: May 21, 2023 | Rates are Flat for now, but Should Drop Later This Year Business Insider How to get a low-cost mortgage refinance Yahoo Finance Should you refinance your mortgage to pay off debt? New York Post What Credit Score Is Needed To Refinance a House | Chase Chase News & Stories Total Household Debt Reaches $17.05 trillion in Q1 2023; Mortgage ... Federal Reserve Bank of New York Ask Chuck: How can I ever afford a home? The Christian Post Refinancing your mortgage could save you thousands — here are some of the best refinance lenders CNBC How To Remove PMI: A Complete Guide Zing! Blog by Quicken Loans Compare Current VA Loan Rates | U.S. U.S News & World Report Money How does mortgage refinancing work? CBS News Should I Refinance My Mortgage? - Buy Side from WSJ The Wall Street Journal Here’s how sharply mortgage refinancing has dropped off Yahoo Finance CFPB Launches Effort to Spur New Opportunities for Homeowners ... Consumer Financial Protection Bureau Today’s 30-year mortgage refinance rates hit lowest levels in 15 days | Oct. 28, 2022 - Fox Business Analysis | It Will Pay to Wait to Refinance Your UK Mortgage The Washington Post Small Business Loan Refinance Bankrate.com Why Older People Can’t Get New Mortgages The New York Times Debt-Ceiling Deal Is Close. Recession And Stock-Market Drop May ... Investor's Business Daily VA Refinance Rates - Current VA Loan Refinance Rates Today Business Insider Current 15-Year Refinance Rates Today Business Insider Refinance Closing: An Overview Zing! Blog by Quicken Loans 7 Refinancing Programs for Seniors Total Mortgage Compare Current 30-Year Refinance Rates Business Insider Heloc vs. Cash Out Refinance Credible
|