When you’re in the market for a new home, one of the most important decisions you’ll make is what type of mortgage to get. One option is a fixed rate mortgage, which locks in your interest rate for a certain period of time.
A long-term home loan rate has a few benefits. First, it gives you the security of knowing what your monthly payments will be for the next 30 years. This can be helpful in budgeting and planning for your future. Additionally, a fixed rate mortgage means you won’t have to worry about interest rates rising and making your monthly payments unaffordable. If you’re thinking of buying a home, a long-term fixed rate mortgage is definitely worth considering!
You can compare the latest fixed rate home loan offers online.
How to get the best deal on a home loan rate
If you’re looking for the best deal on a home loan rate, it’s important to compare offers from multiple lenders. While the interest rate is one of the biggest factors that determines whether a home loan is a good deal or not, there are numerous other factors that play a role too, and these need to be considered as well. For example, there are origination fees, discount points for various circumstances, lender’s mortgage insurance (LMI) premiums and more.
What happens when your fixed rate mortgage expires?
When your fixed rate mortgage expires, you have a few different options:
- You can choose to refinance your mortgage, which would involve taking out a new loan with different terms.
- You could also switch to a variable rate mortgage, which would offer lower interest rates if the market conditions are favourable. However, if interest rates rise, your monthly payments could become unaffordable.
- Another option is to simply continue paying off your mortgage at the same interest rate, but this means you’ll be sacrificing the security of a fixed rate.
Ways to extend your fixed rate mortgage
If you’re happy with your current home loan and don’t want to refinance, there are ways to extend your fixed rate mortgage. One option is to make a lump sum payment towards your mortgage, which will reduce the amount you owe and lower your monthly payments.
Another way to extend your fixed rate is by taking out a home equity loan or line of credit, which can be a good option if you need to make some home improvements or consolidate debt.
Take your time comparing the market and if you’re not sure, seek expert advice
Whether you’re a first home buyer or you’re looking to refinance, any decision that involves a fixed rate mortgage (or any mortgage, for that matter) is a big one. Take the time to do your research and be confident in your decision before committing.