mortagesandforeclosures

by Monty Burn

A fixed rate mortgage is exactly that it is a fixed rate for an agreed term. The term of the fixed rate is your choice and varies from lender to lender.

There are literally thousands of different mortgage deals as each borrower has individual needs. The fixed rate mortgage deal falls into a category but only can decide if it is for you.

Fact number one is that the fixed rate mortgage could provide you with security that you are able to pay your monthly mortgage payment.

One of many reasons borrowers choose a fixed rate mortgage is to protect themselves against a hike in future interest rates.

We all know that facts and opinions are different. You need to know the facts about a fixed rate mortgage to form your own opinion if it is good or bad.

Most household "outgoings" are variables as they can differ each month so it is difficult to budget. So one of the good things about the fixed rate mortgage is that you know what your payment is every month for the duration of the fixed rate term.

For most people their mortgage payment is their biggest single outgoing of the month. Wouldn't it be nice to know that the payment will remain the same for a term of your choice?

What price is peace of mind worth? When interest rates go up it will not affect your monthly payments during the fixed term with a fixed rate mortgage.

When given an option whether to gamble with your mortgage payments take the best option for you.

Some people like to gamble and live on the edge but to gamble whether or not you will be able to afford your mortgage payments due to a hike in interest rates!

If the mortgage interest rate goes down you could argue that you are paying more than you should for your mortgage. However, on the flipside if the interest rate goes up you could lose your home.

You could ask yourself, "Would I be more rattled if I paid too much for my mortgage with an interest rate drop or if I lost my home because I couldn't afford the higher mortgage payments?"

Decisions, decisions! One decision you should think carefully on is whether or not a fixed rate mortgage is for you. Remember the major benefit is constant mortgage payments for the fixed term.

About the Author:

Monty Burn published a bestseller called the Mortgage Bible, grab your copy at his website Mortgage Watchdog or learn how to get a great fixed rate mortgage deal. Insider info there for the taking.

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