Low Fixed Rate Mortgage - As short term interest rates rises, fixed rate mortgages are become more popular. Fixed rate mortgages are more stable, the payment does not change throughout the life of the loan.A low fixed rate mortgage is great for borrowers who plan on staying the home for a longer length of time.
If your current loan program is ARM (Adjustable rate mortgage) it might be a good idea to take advantage of the current low fixed rate mortgage and stop worrying about ever increasing rates.
A low fixed rate mortgage is nearly an oxymoron. Borrowers should realize than a 30 year fixed mortgage offers protection against rate increases, however this protection comes with a price.
A 30 year fixed will have the highest interest rate of any loan product on the market.
Low fixed rate mortgages are best suited for the long term borrower. Although it seems most borrowers want a low interest rate for a long term, it is more likely to get a lower rate with an ARM (adjustable rate mortgage) product as the lender will tend to raise the rates for longer term loans.
Low fixed rate mortgages with the lowest rates are usually only offered to borrowers with excellent credit and who have a 20% or more
down payment.
