Fixed Rate Mortgage in Financial Crunch

Fixed Rate Mortgage in Financial Crunch



In this nationwide financial crunch, people rather like to opt for Fixed Rate Mortgage, than Adjustable Rate mortgage. Economists and Critics even blaming the predatory lending practice and the Adjustable Rate mortgage for this financial down fall. So the Government also coming forward to help the defaulted borrowers so that they can refinance and turn the Adjustable Rate mortgage into Fixed Rate Mortgage. The main features of Fixed Rate Mortgage are -

1. The loan term usually varies between 15 to 40 years.

2. The monthly payments and interest rates remain same throughout the loan period


There are different types of Fixed Rate Mortgages available like 40 year mortgage, 30 year mortgage, and 15 year mortgage. But it is not that you should always go for Fixed Rate Mortgages. If your situation demands Adjustable Rate Mortgage then go for it. Suppose that you are going to stay in that house for 2 or 3 years then it is better to opt for Adjustable Rate Mortgage than Fixed Rate Mortgage.