All Western Mortgage Fixed Rate Home Loans: Pros and Cons
When it comes to buying a home, homeowners have various mortgage options to choose from. However, fixed rate home loans are the most popular type of mortgages in the United States. As the name suggests, the interest rate remains fixed throughout the term of the loan in this type of mortgage and so does your total monthly payments of interest and principal.
Pros and Cons of fixed rate loans: Pros • An FRM loan allows you to accurately predict the amount that you’ll have to pay each month as mortgage payment. Thus, allowing you to plan your monthly budget easily and accurately.
Pros and Cons of fixed rate loans: Pros • Moreover, FRM loans guarantee payment stability throughout the term of the loan and protect the homeowners against any future spikes in interest rates.
Pros and Cons of fixed rate loans: Pros • So, if you consider that interest rates will rise in the future, this is the type of mortgage loan that you should opt for.
Pros and Cons of fixed rate loans: Pros • Also, FRM loans are a great option for first time homeowners as they are easier to understand than the ARM loans.
Pros and Cons of fixed rate loans: Cons • In simpler terms, you can miss out on saving money on mortgage payments even if the interest rates go lower than the fixed rate that you are paying. However, you can take the advantage of falling rates by refinancing your loan.
Pros and Cons of fixed rate loans: Cons • The major disadvantage of opting for a FRM loan is that even though you don’t have to pay more with the rise of interest rates, you also can’t avail the benefit of falling interest rates.
Pros and Cons of fixed rate loans: Cons • Another major factor that you must consider is that fixed rate mortgages are expensive than adjustable rate mortgages due to the fact that there is no rate break.
For more help in understanding FRM loans, you can contact All Western Mortgage at 702-850-2790 or visit our website – www.awmlending.com. We offer 10 year, 15 year, 20 year, 25 year, and 30 year fixed loan options.
All Western MortgageAddress: 8345 W Sunset Rd,Suite 380, Las Vegas, NV 89113 E-mail: email@example.comWebsite:http://www.awmlending.com/ Phone: 702-850-2790Corporate: 702-369-0905Fax: 702-906-0153