Fixed-rate Mortgages Alabama

A fixed-rate mortgage is a mortgage where the interest rate is set for the term of the loan. Your interest rate stays the same for the term of the mortgage or for a specified period of time.

Local Companies

HomeTown Lenders - AUBURN
770-757-6481
724 N. Dean Road
Auburn, AL
Countrywide Home Loans
334-663-3902
1530 E Glenn Ave Suite E
Auburn, AL
Wells Fargo Home Mortgage
(334) 347-8858
1210 Rucker Blvd
Enterprise, AL
First Franklin Financial
(334) 347-5795
621 Boll Weevil Cir Ste 29
Enterprise, AL
ACA Financial Services
(334) 393-8492
414 S Main St
Enterprise, AL
Advance America Cash Advance
(334) 308-1973
614 Enterprise Shopping Ctr
Enterprise, AL
Magnolia Mortgage
(334) 271-7525
5748 Carmichael Pkwy
Montgomery, AL
1st South East Acceptance
(334) 393-8302
1032 Boll Weevil Cir
Enterprise, AL
Cash Cow
(334) 348-2251
1000 Rucker Blvd
Enterprise, AL
Acceptance Capital Mortgage
(251) 340-7474
800 Downtowner Blvd
Mobile, AL

A Fixed Rate mortgage will offer you the security of knowing that your mortgage interest rate will not change during the term of your fixed rate. For example, a lender can offer a 30-year fixed loan to a homebuyer at a 6.5% interest rate. The loan is locked in to the 6.5% interest rate, even if the market interest rate rises to 8.0%. Conversely, if the market interest rate decreases to 4.5%, you will continue to pay the 6.5% interest rate. A Fixed-Rate Mortgage applies the same interest rate toward monthly loan payments for the life of the loan.

Features:

- Straightforward and easier to understand than Adjustable Rate Mortgages (ARMs).

- More secure for the buyer and very popular with first-time home buyers.

- Ideal for anyone who likes to budget monthly expenses and plans to keep their home for several years.

- Since the risk to the lender is higher, fixed-rate mortgages generally have higher interest rates than Adjustable Rate Mortgages (ARMs).

- Tend to have higher initial monthly payments compared to those of adjustable rate mortgages.

- Fixed-rate mortgages are less flexibility than adjustable rate mortgages.

With adjustable rate mortgages the interest rate is not fixed, but changes during the life of the loan in line with movements in an index rate. The advantage of an Adjustable Rate Mortgage is that you may be able to afford a more expensive home because your initial interest rate will be lower. In a fixed-rate mortgage, your interest rate stays the same for the term of the mortgage.

About the Author:

Copyright © 2005.

Chileshe Mwape writes for The Secured Personal Loans Website at: http://www.secured-personal-loan.org.uk/ and he’s also a regular contributor to the Fixed-rate Mortgages blog at http://www.fixed-rate-mortgages.blogspot.com/

This article may be reprinted online as long as all the above links are active and clickable.


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Featured Local Company

HomeTown Lenders - AUBURN

770-757-6481
724 N. Dean Road
Auburn, AL
www.hometownauburn.net

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