Sunday, May 6, 2007

Fixed Rate Mortgage Loans

If the interest rate on the promissory notes remain same through the whole term of the mortgage loans, the loan is said to be fixed rate mortgage loan. In other loans the interest rate may adjust or float.
In United States the fixed rate mortgages are the most classic form of loan for home purchasing and product purchasing. 10 to15 years ago, people thought of a 30 year fixed rate mortgage loan. But nowadays because of a whole new range of selections, there are offers of the lowest monthly payments of fixed rate loans, while providing for a never-changing monthly payment schedule. The 30-year fixed rate mortgage plan may still remains the best mortgage for your circumstances. The loan providers or lenders are there who offer 20, 25, 40 years term mortgages as well.
Other forms of mortgage loan availabe are
  • Interest only mortgage
  • Graduated payment mortgage
  • Adjustable rate mortgage
  • Negative amortization mortgage
  • Balloon payment mortgage.
In general fixed rate mortgages are usually more expensive than adjustable rate mortgages. If compared in terms of interest rates the long-term fixed rate loans will tend to be at a higher interest rate than short-term loans.

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