Mortgage interest rate depend on your choice .Mortgage Interest rate is fixed or fluctuating rate .Fixed interest rate is helpful to fix the monthly budget because you know your monthly as well as yearly payment.
Suppose in market lowest interest rate available and you go for the fixed rate method than you are able to get the advantage of the lowest rate till your maturity.
Fixed interest rate method help you to protect from fluctuating interest rate.
If the interest rate is again reduce in the market you have the option to get refinance facility.
Fluctuating interest rate is useful when the higher interest rate is prevail in the market.
Again the fluctuating rate method depend on the agreement of loan.As per your agreement its change on three month ,six month or in a year or after 5 years.
Again the fkuctuating interest rate comes in caps of 2 percent or 4 percent means the lender can increase your loan only two persent for first time than 4 percent its depend on the agreement.
No comments:
Post a Comment