GThe fixed rate mortgage is considered the most common and choice that is well-known most likely given that it’s been with us the longest.

Fixed Rate Of Interest Mortgage

Once the price is “fixedthat it will never change over the life of the loan” it means. Therefore, unless you decide to refinance your home sooner at a different rate if you lock into a fixed rate of 5% today, it’ll be the same in 20 or 30 years.

A rate that is fixed ensures that your month-to-month home loan repayments (principal + interest) could be the exact same every month. When you begin making your home loan repayments, the majority of it is in interest. Lets walk through a good example so that you could observe how it really works. Click on this link for home financing calculator should you want to play along with your very own figures. Read the rest of this entry