West Hartford Mortgage. When it comes time to take out a mortgage on your new home in West Hartford you will have to choose between getting a fixed-rate mortgage or an adjustable rate mortgage. If you are unfamiliar with these terms here's a simple explanation of them both.
What is a fixed-rate mortgage?
A fixed-rate mortgage is a loan where the interest rate is fixed for the life of the loan. This mortgage offers the most peace of mind for most people purchasing a home in West Hartford because you can count on the monthly payments to remain the same for many years. It is the most popular West Hartford mortgage choice chosen for the dependability. The interest rate on a fixed rate loan will often be slightly higher than the start rate of an adjustable rate mortgage, but it never changes, never goes up.
What is an adjustable-rate mortgage?
An adjustable-rate mortgage is a loan where the interest rate is variable during the life of the loan. It will be fixed for a certain only a period of time, from one month to as long as 10 years. After that point the interest rate of the loan can adjust, going up or down in connection to a certain “index” like the prime rate, or LIBOR. They have limits to how quickly the payment can go up or down called “caps”. The starting interest rate may be lower than that of a similar fixed rate loan. While the lower initial payment can be attractive, but that payment could change and become unattractive. Before getting your West Hartford mortgage, talk about the pro's and con's to adjustable rate mortgages.
The decision of whether to get a fixed-rate mortgage or an adjustable rate mortgage will be influenced by many things. Some people just like the safety of the fixed rate loan. Call me to discuss your situation and if a fixed rate or adjustable rate is right for your West Hartford Mortgage needs at 860-306-8029.
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As quoted in the New York Times "A Little-Known Loan Program", and in the Hartford Courant "Moving In:Couple Combining Households Buys In Newington" and "Moving In... New Britain"