Learn the Basics When Shopping Fixed-Rate Loans in Vestavia Hills, AL
When researching home loans in Vestavia Hills, you'll run across some jargon you might not be familiar with. "Fixed-rate" could be one of those terms. As a company that's dedicated to keeping the dream of homeownership alive, Mr. Cooper is here to help simplify the steps, paperwork, and terminology that's related to buying a home!
What exactly is a fixed-rate loan? It's a mortgage with an interest rate that never changes. Interest rates, expressed as percentages, are what the lender charges for giving you money. Home loan interest rates can go up and down in the same day, so a fixed-rate loan allows you to secure a stable rate. Fixed-rate home loans usually have a 30-year term length. Shorter timeframes are available and typically come with bigger monthly payments but lower overall interest paid over the course of the loan's life. So, what other home loan options are there in Vestavia Hills outside of fixed-rate
Comparing Adjustable-Rate and Fixed-Rate Loans in Vestavia Hills, AL
It's a good idea to learn about all of your loan options in Vestavia Hills, including adjustable-rate loans. Unlike a fixed-rate loan, the interest rate on an adjustable-rate mortgage (ARM) may change based on national indexes. An adjustable-rate mortgage will maintain the same rate for typically 3, 5, or 10 years, then the rate is revised at specific intervals. Your monthly payments could go up if the interest rate goes up at one of these intervals. Talk to a Mr. Cooper mortgage professional about the protections a fixed-rate loan can offer. We'll help you see how different factors can guide you in selecting between an adjustable-rate and fixed-rate mortgage, like how long you plan on living in the house, how large of a mortgage payment you qualify for, and if you could still pay for an ARM if interest rates went up, and where interest rates are headed.
Check Current Fixed-Rate Home Loan Rates in Vestavia Hills, AL
There's so much more to learn about fixed-rate and adjustable-rate loans! Give us a call to check the most recent fixed-rate mortgage rates in Vestavia Hills. Friendly folks are ready to provide you with the latest rates, information, and answers to your loan and homeowner questions.
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