Wed 10th Oct, 2007
Fixed rate mortgages getting cheaper
So you’re thinking about getting a mortgage but not exactly sure which one to get. There are so many types out there and with house prices constantly rising and high interest rates making home loan mortgages more expensive, getting on the property ladder seems almost impossible.
Well, one way of making it easier to understand it all is by familiarising yourself with some of the terminology. Let’s have a look at fixed rate mortgages.
A fixed rate mortgage is a loan where the interest rate remains the same, or in other words, fixed through the term of a loan or for an agreed amount of time. The question we really want the answer to is whether this is the right answer for me? Well, that depends; if you really hate risk it may be right for you but then again interest rates could fall and you would end up losing out. So what is the experts saying at the moment? Is now a good time or bad time for fixed rate mortgages?
Well, the financial news reports say that the prices of fixed rate mortgages are starting to fall following months of soaring rates. This is good news for anyone who wants the security of fixed monthly payments, but don’t be too complacent. Experts are warning that interest rates could rise again later this year.
The best advice for anyone thinking of taking out a mortgage is, “do your homework”. Make sure you shop around and find the best rate out there.