Australian Debt Consolidation
 
Navigation: Home > Debt Articles > Fixed Rate Mortgages

Fixed Rate Mortgages

Is a Fixed Rate Mortgage for You? - Steady and Predictable: Fixed Rate Mortgages

Fixed rate mortgages are always offered as options for home financing. Get the details on fixed rate loans and decide if this type of mortgage fits your financial plan.

Fixed Rate MortgagesHome loans come in many different packages and even during periods when the mortgage market is unstable, you will always find fixed rate mortgage options.

Fixed Rate Terms

A fixed-rate mortgage loan gives you a set interest rate and a set term. The term of a loan is the number of years in which you will pay the loan off and typical fixed terms are 30-year and 15-year fixed rate loans, although 10- and 20-year loans exist as well. Shorter loan terms require a larger monthly payment, and the inverse is true of longer loan terms with lower monthly payments.

While you will pay less each month on a loan payment with a longer term you will also pay more in interest. The amount of interest on a 30 year loan is staggering if the loan is not paid off before 30 years, although income tax deductions for mortgage interest help to alleviate some of this burden.

Fixed Rate Mortgage Perks

Depending on market conditions and promotions from your mortgage lender, the initial payments on adjustable rate mortgages (ARMs) may be substantially lower than fixed rate loans, making the ARMs very enticing. However, once the teaser interest rate ends, you could find yourself in a very different financial climate than existed at the start of the loan.

The primary advantage of a fixed rate mortgage loan is that monthly principal and interest payment do not fluctuate, making the loan payment easy to budget for. While the interest rates on fixed loans are typically a bit higher than other types of mortgage loans, the stable payment may be worth it to you.

A fixed rate mortgage loan may seem rather boring compared to other loans with smaller down payments or a lower initial monthly payment. But, you always know where you stand with a fixed rate mortgage and if you prepay your fixed rate loan with no prepayment penalty the savings are anything but boring.

Home
Debt Problems
◦ Common Causes
◦ Payment Problem
◦ Bailiffs
◦ Council Rate Arrears
◦ Mortgage Arrears
◦ Property Repossession
◦ Insolvent Trading
◦ Statutory Demand
◦ Tax Debt
Debt Solutions
◦ Debt Management Plans
◦ Credit Card Consolidation
◦ Informal Arrangements
◦ Voluntary Arrangements
◦ Credit Counselling
◦ Debt Consolidation Loan
◦ Debt Settlement
◦ Voluntary Administration
◦ Deed of Company Arrangement
Bankruptcy
◦ Advantages and Disadvantages
◦ Bankruptcy Information
◦ Personal Bankruptcy
◦ Filing For Bankruptcy
◦ Debt Agreements
Credit History
◦ Credit Repair
◦ Credit Report
Loans
◦ Mortgage Refinance
◦ Second Mortgage
◦ Home Equity Loan
◦ Home Equity Line of Credit
Debt Articles
Site Map
Links

Queensland - New South Wales - Victoria - Western Australia - South Australia - Tasmania - Northern Territory
Brisbane - Sydney - Melbourne - Perth - Adelaide - Hobart - Darwin 

Important note: The information on this and all pages on this website contains a summary of basic information on debt and debt consolidation issues. It is not a substitute for legal advice. Some provisions of the law referred to may have important exceptions or qualifications. This document may not contain all of the information about the law or the exceptions and qualifications that are relevant to your circumstances. You will need a qualified professional advisor to take into account your particular circumstances and to tell you how the law applies to you.

www.australian-debt-consolidation.com