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By Zhanna Krupnikov
Mortgage lenders in Woodbridge offer fixed rate mortgages with plenty of options in terms of mortgage term, length, etc. Fixed rate mortgages come with various expiry terms, with fixed rate mortgages for twenty-five years being highly common.
Following are a few areas where a fixed rate mortgage in Woodbridge scores over its variable counterpart:
1. Protection from rising interest rates
In reality, the attractive rates of variable rate mortgages remain low only for the initial few years. As the market indices move, these interest rates also change in tandem, usually in the upward direction. Borrowers need to be constantly clued in to the market to watch out for any adverse movements, or else they would be in for a world of pain. Fixed rate mortgage borrowers are spared from the stress of unsettling swings and unstable seesaw of interest rates. In case of any fall in the market interest rate, they could opt for refinancing so as to benefit from the lower rates.
2. Fixed payment
The best part about fixed rate mortgages is their stability. These mortgages are not affected by the market indices and their vagaries and instead, remain at a constant level. As a result, the borrowers feel secure about their monthly payment and are able to determine their monthly mortgage payment exactly.
3. Financial planning and budgeting
By being aware of the exact amount of your monthly mortgage obligation, you will be able to budget your income and expenses accordingly. Thus, you can look forward to a secure financial future ahead without having to worry about adverse mortgage contingencies arising due to frivolous market movements.
However, before you go in for a fixed rate mortgage in Woodbridge or elsewhere, you must familiarize yourself with the following concerns:
1. Fixed rate mortgages are typically very hard to acquire. They have tougher qualifying norms and conditions.
2. Payments made under fixed rate mortgages mainly go towards the interest instead of the principal component of the loan initially. Thus, it can take you a long time to build equity on your home.
3. One may not be able to borrow as much money as one can under variable rate mortgage.
4. The payments under fixed rate mortgages are higher than the payments under variable rate mortgages, particularly during the initial few years.
Before making a choice, it is important to approach a reputed and reliable mortgage lender in Woodbridge, who will not only provide you with mortgage deals that best suit your interest, but will be patient and effective in addressing any of your doubts and concerns regarding the mortgage. he best part about fixed rate mortgages is their stability. These mortgages are not affected by the market indices and their vagaries and instead, remain at a constant level. As a result, the borrowers feel secure about their monthly payment and are able to determine their monthly mortgage payment exactly.
For more information, you may contact:
Allegro Mortgages Corp. – Best Broker for All Your Financing Requirements (416) 987-0008
Check out amortgages.c/ for information on different refinancing options.
About the Author: Please visit the website Amortgages.ca if you are interested to learn more about mortgage Woodbridge, mortgage Maple or mortgages available anywhere else. The website also provides information on mortgage switch.
Source: isnare.com
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