All About Fixed-Rate Mortgages: Why You Should Get One

Mortgages are no one's favorite financing option - but when you're buying a home, it can be an important step. These days, there are more options than ever for people looking for mortgages. In this article, we'll tell you about fixed-rate mortgages and other mortgage types, as well as the benefits of using a Conventio mortgage broker to find the right financing option for your needs!

With the recent change in mortgage regulations, fixed-rate mortgages have become more popular than ever. Not only do they provide you with a predictable payment every month, but there are no surprises as you'll never deal with an adjustable-rate jump when your mortgage comes up for renewal! Fill out and submit the form on this page if you want to find out all sorts of information about rates and whether or not a fixed-rate mortgage might be right for you.

Types of Mortgages

There are many different types of mortgages available on the market today, and each has its own advantages and disadvantages. fixed-rate mortgages are one of the most popular types of home loans, and for good reason. Here are a few things you should know about fixed-rate mortgages:

fixed-rate mortgages offer predictability - With a fixed-rate mortgage, your monthly payments will stay the same for the life of the loan. This can make budgeting much easier, as you won't have to worry about your payment increasing suddenly.

fixed-rate mortgages often have lower interest rates than other types of loans - over time, this can save you thousands of dollars in interest payments.

fixed-rate mortgages can be harder to qualify for - since the interest rate is locked in, lenders perceive them as being riskier. As a result, you may need a higher credit score or down payment to qualify.

When deciding on a mortgage, you have many options to choose from. Each type of mortgage has its own unique set of features and benefits. Some types of mortgages are better suited for certain situations than others. In this article, we will discuss the different types of mortgages so that you can make an informed decision about which one is right for you.

There are two main types of mortgages: fixed-rate and adjustable-rate. As the name implies, a fixed-rate mortgage has a fixed interest rate for the life of the loan. An adjustable-rate mortgage (ARM), on the other hand, has an interest rate that can change over time.

The most common type of mortgage is a 30-year fixed-rate mortgage. This is a good option if you want predictable monthly payments and don’t mind paying more interest over time since the interest rate is locked in for the life of the loan.

If you want lower monthly payments, you can opt for a 15-year fixed-rate mortgage. While your monthly payments will be higher with a 15-year loan than a 30-year loan, you will pay less interest over the life of the loan since the interest rate is locked in for 15 years.

If you are planning to sell your home or refinance within a few years, an ARM may be a good option for you since it typically has lower interest rates than fixed-rate mortgages. Keep in mind that your interest rate could increase

Advantages of a Fixed-Rate Mortgage

If you're looking to buy a home, you may be wondering if a fixed-rate mortgage is the right type of loan for you. After all, there are several different types of mortgages available, each with its own set of pros and cons.

So, what are the advantages of a fixed-rate mortgage? Here are a few things to keep in mind:

1. You'll know exactly how much your monthly payments will be.

With a fixed-rate mortgage, your monthly payments will always be the same, so you'll never have to worry about them going up unexpectedly. This can make budgeting for your mortgage easier and help you plan for the future.

2. You may get a lower interest rate.

Interest rates on fixed-rate mortgages are often lower than those on adjustable-rate mortgages (ARMs), which means you could save money over the life of your loan. In fact, if interest rates rise in the future, you'll still be paying the same low rate on your mortgage (unless you choose to refinance).

3. You can lock in today's rates.

If interest rates are low when you get your mortgage, locking in a fixed rate means you can keep that low rate for the life of your loan (assuming interest rates don't fall even further). That can save you big money over time, since even a small difference in interest rates can add up to thousands of dollars over the years.

Disadvantages

Fixed-rate mortgages have some disadvantages compared to other types of mortgages. For one, they generally have higher interest rates than adjustable-rate mortgages. This means that your monthly payments will be higher, and it will take you longer to pay off your loan. Additionally, if interest rates rise during the life of your loan, you'll be stuck paying the higher rate.

Another disadvantage of fixed-rate mortgages is that they don't offer the same flexibility as adjustable-rate mortgages. With an adjustable-rate mortgage, you can choose to make lower monthly payments initially, and then pay more later on when you have more money. This can be helpful if you're expecting a raise or expecting your financial situation to improve in the future. With a fixed-rate mortgage, your payments will stay the same every month, no matter what happens with interest rates or your income.

Other Mortgage Options

If you're not interested in a fixed-rate mortgage, there are plenty of other options available to you. One popular option is an adjustable-rate mortgage (ARM), which offers a lower interest rate for a set period of time before the rate adjusts.

Another option is a balloon mortgage, which requires you to make smaller monthly payments for a set period of time before paying off the remainder of the loan in one lump sum.

You could also consider a government-backed mortgage, like those offered by the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA). These loans typically have more favorable terms and conditions than conventional mortgages.

Whatever type of mortgage you decide on, make sure you shop around and compare offers from multiple lenders before making a decision.

Company Profile: Conventio

Conventio is a national full-service mortgage lender with offices in major metropolitan areas across the country. We offer a wide range of mortgage products and services to meet the needs of homebuyers and homeowners.

Conventio has been in business since 1997 and is a subsidiary of Prudential Financial, Inc. (NYSE: PRU). We are licensed to lend in all 50 states and our products are available through a network of wholesale and correspondent lenders.

Our mission is to help homebuyers and homeowners realize their dreams by providing them with the financing they need to make their purchase or refinance possible. We take great pride in our long history of helping families achieve their homeownership goals.

We offer a variety of mortgage products, including fixed-rate mortgages, adjustable-rate mortgages, jumbo loans, government-backed loans (FHA, VA, USDA), and more. We also offer an array of refinancing options for those who already own a home but would like to lower their monthly payments or consolidate their debts.

Whether you’re a first-time homebuyer or an experienced homeowner, Conventio can help you find the right mortgage solution for your needs. Contact us today to learn more about our products and services or to apply for financing.

Conclusion

fixed-rate mortgage is a great option for anyone looking to buy a home. They offer stability and peace of mind, knowing that your monthly payments will never change. With interest rates at historic lows, now is a great time to consider getting a fixed-rate mortgage.Contact your local bank or credit union today to find out more about their fixed-rate mortgage options and see if one is right for you.