What Is a Fixed Rate Mortgage?
The process of buying a house can be long and complicated, with a lot of different choices to make. One of the biggest choices to make is deciding what type of mortgage you are going to apply for in order to pay for the home. There are many different types of mortgage rates available, as well as different types of mortgages. It is important to do all of the necessary research in order to figure out which type of mortgage will be best for your specific situation. While you won’t need to make this choice until after you have found a home to purchase, it is still a good idea to start looking at your choices early on.
There are two main types of mortgages to consider: fixed rate mortgages and a variable rate mortgages. The names of the mortgages give you a sense of their differences. A variable rate loan has interest rates that can change on a monthly basis. This results in having monthly mortgage payments that may go up or down at any time, hence the use of the term variable. A fixed rate loan provides the borrower with an interest rate that will remain constant throughout the entire lifetime of the loan.
A fixed rate mortgage is the most popular choice when it comes to mortgage types. It allows the borrower to anticipate how much they will need to pay on a monthly basis and allows them to remain confident that the number will not change. Many people choose the fixed rate loan because it provides room to plan for the future, without the possibility of payment increases.
A fixed rate mortgage will often have a slightly higher interest rate than the beginning rate of variable rate mortgages. This is because fixed rate mortgages try to consider the inevitable rise of interest rates in the future and factor them into their rates. Because a fixed rate loan is harder to qualify for, many people will choose variable rates out of necessity or to get a lower initial monthly payment. However, there is more of a risk involved in choosing a floating, or variable rate mortgage.
A Fixed rate mortgage comes in many different term lengths. The most common form is the 30-year fixed rate. This means the monthly payment for the mortgage and the interest rate will remain constant for the 30 allotted years. It also means that in 30 years the loan will be completely paid off. 15-year fixed rate mortgages are also popular, but as the term shortens, the monthly payments begin to increase. If you are able to pay your loan off in 15 years, you will end up paying significantly less interest than if you were to choose a 30-year term. You should examine your financial records to determine which type of loan will best suit you.
What is the GLM Mortgage Group?
GLM Mortgage Group, powered by Dominion Lending Centres, is your Vancouver and Lower Mainland Mortgage Brokerage service. We are always ready to move forward with you to obtain the mortgage you need with the sharpest mortgage rate available. Whether it’s a fixed rate or variable rate mortgage you are after, we are dedicated to finding the best mortgage rates in Vancouver, including Home Loans, Consolidation Loans, Lines of Credit and more. No matter what you need, our team of Mortgage Specialists will follow through to find the best mortgage product that fits your individual circumstances. Our free online mortgage calculator keeps you informed on how much your mortgage payment will be as well as show how different mortgage rates will affect the mortgage you require.As your Vancouver mortgage broker, GLM Mortgage is committed to clear communication with our clients. We make sure you are informed on all the mortgage options available to you. We call you back within 90 minutes to make sure that you have the fastest service available. We are not only available in Vancouver and the Lower Mainland, we are also available across Canada.GLM Mortgage Group is your Vancouver mortgage specialist. With over 22 years of experience in the investment industry we know how to wade through the challenging process of getting a mortgage. We provide smarter options to putting your mortgage in place. We know how important it is to have an experienced professional Mortgage Specialist available to walk through your mortgage experience and stay with you through to the very end.We get you a fast “YES” at the sharpest rate… guaranteed! Call us now so that you can get that mortgage you’ve been waiting for. We already have been working for you, making sure that you will have every option of a mortgage available to you. GLM Mortgage Group is on call for you!