The Benefits of a Fixed-Rate Home Loan

Fixed-rate mortgages are one of the most popular types of mortgages in the United States — and for good reasons. Below, we'll take a look at some of the many benefits of fixed-rate home loans. Contact Home Financing Center, a mortgage lending company in Miami, to get started today!

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You Lock in Your Interest Rate

Probably the main reason that fixed-rate home loans are so popular is that you lock in your interest rate. While this means your interest rate won't go lower in the case interest rates fall, it also means they won't go higher, either.


Predictable Monthly Payment

Because your interest rate stays the same, your monthly mortgage payment will stay the same throughout the life of the loan. This makes it easy to budget your expenses every month, as well as determine if the price of the home is one you are comfortable making for the foreseeable future.


Can Be Easier to Qualify For

Because your loan amount is preset and won't change throughout the course of the loan, many lenders feel extremely comfortable lending on fixed-rate mortgages. With adjustable-rate mortgages, lenders may be uneasy that you won't be able to repay your mortgage if interest rates rise.


You'll Know the Cost of Your Mortgage From Day One

Because your interest rate won't change, you'll know exactly how much interest you'll be paying over the course of your loan term. This can help you determine if you want to make extra payments on the life of your loan or even shorten your loan term.


Home Financing Center is a top-rated mortgage lender in Miami, Florida. We offer many types of mortgages to suit your needs, including fixed-rate mortgages. To get started, contact us today!

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