When it comes time to purchase a home, this is a process that is both exciting and fun, but it can be a bit overwhelming when trying to figure out all of the finer details of financing. Even with mortgage rates and housing prices fluctuating over time, a constant that buyers can always depend on is having a fixed-rate mortgage in Long Island.
What Are Fixed Rate Mortgages?
When looking at a fixed-rate mortgage, these are options that have an interest rate that stays the same over the life of the home loan. With these residential mortgages, your principal and interest for your monthly payment will not change. However, it is vital to note that payments can fluctuate if you have homeowner’s rates or property taxes rolled in with the loan that go up or down. These US mortgage rates remain one of the most popular types of financing because it is both stable and predictable for your budget.
Generally speaking, a fixed-rate mortgage in Long Island will often have a higher interest rate than you may find with adjustable-rate mortgages (ARM). Adjustable mortgages will come with a lower, fixed-rate initially, and then it can go up or down depending on the market. The good news is that most ARMs will also have a cap so that you should not have to worry about it getting too high.
What About Repayments?
The number of years that you have to repay your home loan is considered the mortgage term. With a fixed-rate mortgage, they usually have a term of either 15 or 30 years. There are always going to be various pros and cons with each of the term options.
- 30-Year Fixed-Rate Mortgages: the upside to this option is that the monthly payments will be lower than a short-term home mortgage for any given loan amount. The downside is that you could end up paying a bit more total interest throughout your loan in comparison to a shorter-term option.
- 15-Year Fixed-Rate Mortgages: the upside here is that you will have a lower interest rate and less total interest throughout your loan. The downside is that the monthly payments will be higher for any given loan amount.
No matter what, it is always going to be best that you take the time to learn about today’s mortgage rates in New York and what your options are. If you are unsure of the right path to take, you will find that working with a reputable Long Island NY mortgage broker will be extremely beneficial.
With Lynx Mortgage Bank, we are always with you each step of the way. It is crucial to our team that we help our clients to secure their loans and remain in their corner all the way through to the final steps at closing. If you want to find out if a fixed-rate mortgage in Long Island is right for you, simply get in touch with our staff, and we will be happy to go over the details with you. Contact Lynx Mortgage Bank to learn more about our products and programs at (877) 599-LYNX.