Best Mortgage for First Time Homeowners
May 7th, 2010
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First-time homebuyers are better off making stable monthly mortgage payments throughout the entire term of the loan. Typically, fixed rate mortgages remain the same whether it’s a 15, 20 or 30 year mortgage. They allow for predictability in one’s monthly housing costs.
Fixed rate mortgages have several advantages:
- You get inflation protection in case interest rates increase because you won’t be affected
- You get to plan long term for other expenses and goals because you know how much your monthly payments will be for the entire term of your mortgage
- You lower your risks because you know what your mortgage payments will be regardless of the current interest rate