When you apply for a mortgage, one of the decisions that you will need to make is whether to take out a fixed or adjustable rate mortgage. Those who are looking for steady, long-term, predictable rates will want to consider a fixed rate home loan.
With a fixed rate home loan in Washington state, the interest rate at the start of the loan is also the interest rate which you will pay for the entire lifetime of the loan. It is locked in place or "fixed," and thus the name.
Here are a few reasons to consider a fixed rate loan:
With a fixed rate loan, there is less financial uncertainty. If interest rates in the area rise, you can rest assured that your interest rate will not. The loan will remain as affordable in the future as it is now.
The cost of a fixed rate loan is easy to calculate. The same cannot be said for an adjustable-rate mortgage over a long span of time, because there is no way to predict how much the ARM may cost in the future.
Whether you are purchasing a home now or you are considering refinancing in order to turn an adjustable-rate mortgage into a fixed rate loan, here are some situations where it might be appropriate:
Deciding between a fixed rate mortgage and an adjustable rate loan can be a challenge. If you have questions along the way, we can help. We have guided many buyers throughout Washington state in choosing a mortgage format to meet their short and long-term goals.
if you are ready to lock in an affordable fixed rate on a competitive mortgage in Seattle, Bellevue or the surrounding area, please give us a call at (206) 352-6453. We look forward to setting up a consultation.
Blue Square Mortgage is an Equal Housing Lender. As prohibited by federal law, we do not engage in business practices that discriminate on the basis of race, color, religion, national origin, sex, marital status, age, because all or part of your income may be derived from any public assistance program, or because you have, in good faith, exercised any right under the Consumer Credit Protection Act. Disclaimer: Programs subject to change without notice. All borrowers must qualify per program guidelines.