Fix My Home Loan - When is the Right Time?

However, asking the experts who know of available "fixed-rate" products in Australia which are as flexible as the variable rate products should solve this issue.
By: Hurley Abernethy
 
May 4, 2010 - PRLog -- The most basic types of home loans are variable and fixed rate home loans. Variable home loans fluctuate and vary depending on the market, while fixed rate home loans, as the name implies are fixed for an agreed period.

When should I fix my rate?

One of the first and most important questions to ask is when should one decide to fix the rate of the loan? The crucial factor at this point in time should be that interest rates are low. In that way, if the market for loans provides for a very low interest rate, then it would be highly advantageous to fix your rate of loan.

When should I just keep to the variable rate?

However, there are also times when deciding to fix the rate of the loan should be set aside. This is especially true when the interest at the time is high. If this is the case, it would be more detrimental to fix your rate of interest, as you will be stuck with a higher rate for a set period of time.

Traditionally fixed loans are not as flexible as variable rates, as when one wishes to opt out of a fixed rate loan, in favor of a variable loan, large "exit" fees are required. Furthermore, if one comes across a good amount of money to pay the fixed loan in advance, there would be penalties, as the lender would be losing interest income for advanced payment.

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Source:Hurley Abernethy
Email:***@yahoo.com
Zip:30301
Tags:Subprime Mortgage Lenders, Fix Home Loan, Discount Mortgage, Buy To Let Mortgage, Wholesale Lenders
Industry:Business
Location:Atlanta - Georgia - United States
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