There are several options available for homeowners seeking a loan. One is a fixed rate loan, and the other is a variable rate loan. If you’re wondering what the advantage is of getting a fixed rate mortgage Las Vegas, we will gladly provide the answer. Essentially, a fixed rate loan offers the security of having a consistent monthly payment. With this type of loan, your payment remains the same from the first payment that you make to the last. If you’re curious to learn more about the advantages of a fixed rate loan, here’s what you should know.
When you have a fixed rate mortgage Las Vegas, your payments are generally lower than they would be with a variable rate loan. Most fixed rate mortgages last for 30 years. While you make many monthly payments during that time, the payments are consistent and make for a more predictable overall budget.
Another advantage of a fixed rate mortgage is that it provides payment flexibility. With this type of loan you must make the minimum payment required each month. However, you can also choose to make a larger payment. If you can afford to make a larger payment, you can shorten your loan duration and even avoid paying more in interest rates.
Financing a home is a significant investment. Many individuals find that having a predictable mortgage payment is a big relief. Knowing how much you will be paying each month also helps you plan housing payments into your overall budget. Unlike a variable interest loan, a fixed rate loan also locks in interest rates. This means you don’t have to worry about interest rates that fluctuate with the economy or change monthly.
When it comes to mortgage payments, less is more in the housing market. Since a fixed rate mortgage has lower payments, you have a better chance of qualifying for a more expensive property.
Larger Tax Deductions
Fixed rate home loans Las Vegas can also save you money on taxes. Existing tax laws let prospective homeowners deduct mortgage interest rates from their taxes. This is especially true during the first several years of a loan, when most mortgage payments are used to pay off interest rates.
Now that you know some of the advantages of getting a fixed rate loan, you’ll want to know whether or not a fixed rate mortgage is the best choice for you. This type of loan is ideal for individuals who plan to stay in their house for a long period of time and who prefer the stability and predictability of a fixed interest rate and principal.
If you want to learn more about fixed rate mortgages or get help with securing a loan, let us know. As experienced loan officers, we are eager to help meet your needs as a homeowner in the Las Vegas area.