What are the advantages of Fixed Rate Mortgages vs. Adjustable Rate Mortgages?
With a fixed-rate loan, your monthly payment of principal and interest never change for the life of your loan. Your property taxes may go up (we almost said down, too!), and so might your homeowner’s insurance premium portion of your monthly payment, but generally with a fixed-rate loan your payment is stable My 123 Mortgage.com offers fixed rates in all sorts of shapes and sizes: 30-year, 20-year, 15-year, even 10-year. During the early amortization period of a fixed-rate loan, a large percentage of your monthly payment goes toward interest, and a much smaller part toward principal. That gradually reverses itself as the loan ages. If you have a fixed mortgage right now, think about how much the loan was when you got it, and where the balance is today. In five years, you may only have cut the principal by five thousand, but you may be paying $3,000 a month! You might choose a fixed-rate loan if you want to lock in a low rate. If you have an Adjustable Rate Mortgage (ARM) now, refinanci
