Loan Options - Fixed Rate Loans

Is a Fixed Rate Mortgage Always Your Best Choice?
It's well known that the Fixed Rate mortgage is still the the most popular home loan originated in today’s market and with very good reason. This type of mortgage loan provides a consumer with a guarantee of a fixed rate and a consistent monthly payment for the entire term of the loan. (common terms are 15 and 30 years with many lenders also offering terms up to 40 years). However, should you consider other loan options? Scroll below to read more about fixed rate home loans.

Advantages

Fixed rate mortgages provide a number of tangible benefits over adjustable rate and hybrid home loan options. These advantages include:
Long Term Interest Rate Security
Consistent Monthly Payments
Automatic Principal Reduction
Flexible Down Payment Requirements

Disadvantages

Many home loan professionals believe there are no disadvantages with a fixed rate mortgage however by simply comparing programs to programs one extremely important variable is not factored in - the Homeowner.
Because of this variable it can also be argued that fixed rates do not provide the greatest advantage for some homeowners. Remember, this is a false statement for the majority of homeowners however there are still a quite a few people who have:

Great Self Discipline
Opportunity and Affordability to Assume Risk
A Stable Income Environment
Short Term Homeowners with Realistic Timeframes