Why You Should Get a Fixed-Rate Loan

When shopping for a mortgage, you have a lot of loan products available to you. For instance, you could get a government, traditional or jumbo loan. You can also choose between products that have a variable rate and those that have rates that are fixed for the life of the mortgage. While you should always choose a mortgage that best meets your needs and budget, fixed-rate loans can be ideal for a wide variety of borrowers.

You Always Know What Your Mortgage Payment Will Be

The principal portion of your loan payment will stay the same throughout the life of the loan. This is because the price of the home won’t change after you purchase it. Therefore, the only thing that can make your payment go up or down is a change to the interest rate.

With a fixed loan, you never have to worry about your rate changing, which means you never have to worry about your payment changing. If interest rates go below the one that you are currently paying, you can refinance the loan at the lower rate.

Its Easier to Budget When Your Housing Payment Never Changes

When you know what your payment will be each month, it becomes easier to create a long-term budget. If you are like most adults, you also want to have money for transportation, entertainment and to save for retirement. Since your housing payment will never go up, you won’t have to sacrifice other financial goals just to stay in your home.

Do Your Research When Choosing a Loan Product

A mortgage broker or other real estate professional may be able to tell you more about fixed-rate loans and their potential benefits. Almost any mortgage company in Las Vegas will offer this type of loan at competitive interest rates and with multiple payment terms to choose from.