Mortgage – Fixed Interest Rate
An interest rate that, once established in the contract between the lender and the borrower (home buyer), does not change according to fluctuations in the prime lending rate.
What is fixed interest rates advantage
This fixed interest rate is the reason why many do refinancing from the adjustable rate mortgages. If the current mortgage rate is low, it is financially wise to get hold of such a mortgage interest rate, and save money by lowering the rest of the interest payments left.
Fixed-rate charges the same rate of interest throughout the duration of the loan. This type of loan has to be secured against a mortgaged property.
So What Can You Do To Improve Your Situation?
The best advice is to bump your credit score up! It will give you better leverage when facing the lenders, and better negotiation position when applying for any financial need.
Lets not forget you are probably paying $500-$1000 extra per year in higher interest rates, and credit payments.
If your score is below 700, you might want to clean it yourself – get this ‘Credit Repair University’ which will save you money and time.
Yes, you might need to invest a small sum to get a grip of things.. But if you think education is expensive.. try ignorance..
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Ignorance costs more.
Check here for more mortgage definitions.