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What Are The Advantages and Disadvantages of a Fixed-Rate Mortgage?

What Are The Advantages and Disadvantages of a Fixed-Rate Mortgage?


What Are The Advantages and Disadvantages of a Fixed-Rate Mortgage?

The modern home buyer has a number of different options available to them when they are choosing the right type of mortgage to fit their needs.

In fact, conventional loans like fixed-rate mortgages have many advantages. And a good mortgage company will work with you to make sure you have everything in place before closing on the home of your dreams. But how do you know whether a fixed-rate mortgage loan is right for you?

Fixed-Rate Loan Benefits

A fixed-rate mortgage loan is designed to protect borrowers form sudden and often considerable increases in their monthly mortgage payments in the event that interest rates rise. They are very easy to understand and don’t change much from lender to lender. They are often ideal for everyone from first-time buyers to those looking at investment properties.

Downsides to Fixed-Rate Loans

One of the biggest disadvantages of fixed-rate mortgages is the required qualifying criteria that homeowners must meet. For example, if the interest rates are high, it can make qualifying for this type of loan much more difficult because the payments will become less affordable for some people.

How Can I Learn More?

Want more information on the different types of home loans available to you? At Mortgage Investors Group, we’re here to help! The mortgage process doesn’t have to be confusing when you’ve got an experienced lender by your side. Call 800-489-8910 or contact our knowledgeable team today to set up an initial consultation and learn more about fixed mortgages.

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Mortgage Investors Group, based in Tennessee, offers residential financing in a number of states in the southeast, See MIG Service Areas. Terms and conditions to apply to home financing. We want to share with you the loan terms vary based on several characteristics and your financial profile. These include but are not limited to loan program, loan purpose, occupancy, credit history, credit score, assets, and other criteria per loan type. The repayment terms and interest rate may vary from time to time. The terms represented here are based on certain assumptions outlined below and/or noted on the loan outline page. Additional details concerning privacy, program disclosures, licensing specifics may be found at migonline.com Legal Information.

MIG Loan Officers will help gather the information needed for an individual assessment to provide home financing which matches the loan characteristics with your home financing needs based on your financial profile, when you are ready to begin a full loan application. For estimates and general information before that step, the basis for which the mortgage financing information are as follows:

  • Rates are subject to change at any time.
  • Rate locks are available at current terms for 30 to 180 days based on program type, credit profile, property location, etc. which will affect the available rate and term.
  • Rate locks are available at current terms for 30 to 180 days based on program type, credit profile, property location, etc. which will affect the available rate and term.
  • Payments will vary based on program selection, current rates, property location, etc.
  • Not all programs are available in all states.
  • Some loan programs may not be available to first time home buyers.
  • Terms and conditions apply, which may include restrictions or limits per loan program.
  • Information is generally based on primary residence occupancy with no cash out when refinancing.
  • Unless otherwise stated, terms shown are estimates based in part on credit score of 700 or higher; owner occupancy, escrow account is established for taxes and insurance(s); debt-to-income ratio no higher than 43.0%; PMI applies to conventional loan programs over 80.0% LTV; VA,FHA & RD require insuring fees included in loan and/or payment; fixed rate, 30 year term.

An MIG Loan Officer is available to help with your financial details to determine which characteristics apply to your situation for a personalized look into which loan program best fits your home financing needs. Please use the Find a Loan Officer link or reach out to Mortgage Investors Group at 800-489-8910. Equal Housing Lender 1.2020