Whether you’re buying a home for sale in Uptown Charlotte, a single-family home for sale in Mint Hill, or even a condo in another area such as South Park or Ballantyne, if you’re like most people, you’ll need to take out a mortgage loan to pay for it.
Mortgages—and shopping for them—can be pretty complicated, particularly when it comes to choosing the type of mortgage that’s right for you.
What is a Fixed-Rate Mortgage?
A fixed-rate mortgage lets you, the borrower, know exactly how much you’ll pay each month for the term of the loan. You’ll know your interest rate before you sign the dotted line, and you’ll have a guarantee that your interest rate will stay the same for the life of your loan. No matter what fluctuations the market sees as far as interest rates, yours isn’t going to change.
Your lender will crunch some numbers to find out how much it’ll cost you to pay off all the interest and the principal of your loan to come up with your monthly payment. It’s not going to change unless you refinance your home (or you sell your home and pay off the entire balance all at once).
General Types of Fixed-Rate Mortgages
Fixed-rate mortgages are typically available in 15-year and 30-year terms, although you can find other terms if you ask around.
When is it a Good Idea to Get a Fixed Rate Mortgage?
It may be a good idea for you to get a fixed-rate mortgage if you think interest rates are low, you can afford the payments, and you need the security of knowing exactly how much your monthly payments will be. Typically, because you’re paying mostly interest at first, a fixed-rate mortgage is a good idea if you plan to stay in the home for a long time.
Are You Looking for a Home for Sale in Charlotte or the Surrounding Communities?
Call us at 704-608-2794 to talk to a knowledgeable Charlotte Realtor® who can help you find the perfect place to live today.
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- All Charlotte, NC real estate listings
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