Fixed Interest Rate Mortgages
Fixed rate loans has a set interest rate for a period of time. This means you know exactly what your repayments will be for your fixed rate term. This is good for budgeting because you know what your exact repayments will be for the fixed term and if interest rates increase then you may benefit by paying a lower interest rate.
However, these loans are usually more expensive than variable rate loans and if interest rates decrease, you may not benefit from lower repayments. You will also usually be limited to the number of extra repayments you can make without penalty. Fixed home loans do sometimes come with features but they are less common and there are fewer options than with a variable rate.
There are many types of fixed rate loans offered by a number of lenders. To find the better fixed loan types we recommend that you meet with a mortgage broker. Most commonly a fixed mortgage is repaid monthly, although you may be able to talk to your lender about making fortnightly repayments if you prefer. The best thing about a fixed home loan is the security of knowing exactly how much you will be paying each payment date. This is great for those homeowners on a budget or simply wanting the peace of mind this offers.
The decision over whether to fix your interest rate is a personal choice and really depends on your circumstances, how much flexibility you require, versus how much security you want, and whether you think interest rates are on the way up, or down. It’s a good idea to talk to a mortgage broker to see what option is best for you.
To get the latest fixed rates contact your mortgage broker Brisbane today on
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