Simplified explanations of common mortgages and loans
Various articles explaining the variations and implications of a commonly used mortgage terminology.
Florida Fixed Rate Mortgages
Fixed-Rate Mortgage (FRM): An interest rate, that remains fixed for the entire term of the loan. Common fixed rate terms are 15 and 30 years, your lender may offer other term times such as a 10, 20, or 25 years. A fixed interest rate may best be used by a borrower who has a fixed income.
A fixed rate gives some protection against a rise in market interest rates over the term of the loan. A fixed interest rate, therefore, avoids the interest rate risk that comes with an adjustable rate mortgage loan. Although a borrower may have a fix rate loan, the Borrower must and should be aware that when escrowing taxes and insurance that their payment may fluctuate due to the changes in the local tax rates as well the ever changing cost of home owners insurance.
At Solutions First Mortgage Inc we believe in most cases it may be best to get the longer 30 years fixed rate term for those on fixed incomes with higher debt to income ratios. Remember it is easy to make an extra payment towards your principle in good times than it is to be forced to make a higher monthly payment when a hardship comes along. We do not want to see you in foreclosure or to be homeless.
Our service has been designed to remove the stress and misunderstandings commonly associated with buying a property.
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