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Top 3 Benefits Of Fixed Rate Loans

Todays Date: December 10, 2018

A fixed rate loan is a mortgage loan first developed by the Federal Housing Administration. Fixed rate loans have become one of the most popular loans in America due to it’s unique benefits. To help you decide if a fixed rate loan is right for your mortgage, here are the top three benefits of fixed rate loans.

1. Lock: Unlike some mortgages, a fixed rate loan ‘locks’ or stays the same.This means the interest rate will remain the same on the note through out the loan. This is one of the major attractions of fixed rate loans. Since the loan does not float, this let’s the customer feel more at ease as they won’t suddenly need to pay more each month.

2. Loan Term: Whatever your desired amount of time maybe for you term, a fixed rate loan allows you to choose what is desirable for you. While the most common terms are 15 or 30-year mortgages, shorter terms are also available and for those who want longer terms 40 and 50-year mortgages are also available and are common in areas with high priced housing.

3. Prepayment: With a fixed rate mortgage there is often the option to prepay the principal early and without penalty. If you pay early, the total interest paid will reduce. This allows you to shorten the amount of time needed to pay off the loan!

A fixed rate loan is not for everyone, but it can be a great benefit to many. If you want a mortgage loan that allows you to have a fixed interest rate and allows you to choose the term you feel you need then a fixed rate mortgage may be what you are looking for.

For all of your Loan planning needs which include Fixed Rate Loans, We at American Capital Mortgage would like to help you save money and keep your home loan process easy and quick!

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