- Contact Us |
- Careers |
- Security |
- Locations |
- Sitemap
Fixed or Adjustable Mortgage?
Here's a way to make choosing easier.
The decision to buy a home is one of the biggest and most exciting you'll make in your lifetime. And it's just the beginning of a series of decisions you'll have to make - from the style of home you want, to the city or town to live in, to the type of mortgage to make it affordable.
The simple fact is, choosing the right mortgage for your situation and budget is one of the most critical decisions you have to make. Do you choose a fixed-rate mortgage that offers fixed monthly payments? Or an adjustable-rate mortgage that offers lower payments in the early years?
It pays to do your homework.
Before you decide, there are a few important questions you need to ask:
- How long will you be in your new home?
- Will this be the last house you live in?
- Do you expect your income to rise?
- What is the current interest rate environment?
The benefit of a fixed-rate mortgage: The predictability of fixed monthly payments.
As a general rule, a fixed-rate mortgage is ideal if you plan to live in your home for a longer period. With a fixed-rate mortgage, you'll:
- Lock in a fixed interest rate for a fixed number of years, usually 15, 20, or 30 years, no matter what happens in the market.
- Know exactly how much you owe each month, making budgeting easier.
The benefit of an adjustable-rate mortgage: Flexibility.
If you plan to live in your home for a shorter period of time, usually seven years or less, an adjustable rate mortgage may be the right choice. With an adjustable-rate mortgage, you'll lock in a fixed rate for a certain number of years and then each year after, your rate will adjust annually.
With an adjustable-rate mortgage, you will:
- Keep your payments lower in the early years when your income is lower.
- Be able to qualify for more money and potentially get a bigger home.
- Be protected by interest rate caps, which limit how much your rate can increase by in a given adjustment period.
We can help you find the perfect mortgage.
At Metro, our knowledgeable Mortgage Specialists are here to help guide you and make all the right decisions for your situation. To arrange a time to speak with a knowledgeable Mortgage Specialist about your situation,
contact us, or call 877-MY-METRO EXT. 7589.
