Posts Tagged ‘30 year fixed mortgage rates’

30 Year Fixed Mortgage Rates

Tuesday, February 1st, 2011

Advantages of Fixed Rate Mortgages

Fixed rate mortgages are immensely popular among home buyers in the US when the prevailing interest rate is low. During the recession, interest rates sustained severe hits, pushing the cost of mortgages down. However, the uncertainty in the economy and financial crunch also resulted in dramatic reduction in salaries. Several companies took to mass lay-offs and this further added to the uncertainty in all segments of the economy.

As the economy is slowly finding its feet once more and job security is registering an improvement, there is a renewed interest in the housing market. The good news for prospective home buyers is that the upturn has not yet made a significant impact on interest rates, leaving them at subdued levels even now. This presents a wonderful opportunity if you are looking to buy your dream home with a mortgage loan.

Insulate Yourself Against Future Interest Rate Hikes

By taking a fixed rate mortgage in this current low interest climate, you can insulate yourself against future increases in interest rates. By doing so, you can save a significant amount of money, especially if the rates increase substantially over the next few years. You will get maximum protection as well as the greatest impact of such savings when you opt for long term mortgages such as 30 year fixed mortgages.

Know Your Monthly Outgoing in Advance

A fixed rate mortgage is the easiest loan to keep track of. The monthly outgoing you need to make towards this loan is known right at the time when you take the mortgage. You can plan for this payment well in advance and perhaps even set up a separate account from where this payment is made every month.