A fixed rate mortgage guarantees you the principal and interest will never increase during the life of the loan. A fixed interest rate loan can be refinanced for a mortgage with better terms but this is the only way the mortgage rates can be changed. However, the rate is not your only concern. The mortgage costs need to be compared because they add to the cost of the mortgage.
The costs involved in a fixed rate mortgage must be compared to other fixed rate mortgages. For example, if an attractive interest rate is accompanied by high closing costs, it may not turn out to be the least expensive of the fixed rate mortgages. One fee that shows up at closing is something called “points.” A point is equal to one percent of the loan. A mortgage which carries 3 points it is a more expensive mortgage that one with 1 point assuming the interest rate, costs and term is equal.
Other fees can show up at closing which can make one mortgage more costly than another. These fees are called origination fees, document fees, monthly mortgage insurance fees, and several other smaller fees. If you use a mortgage broker, then ask what his fee is so you can compare one broker’s fee to another’s.
The mortgage market is filled with offers that promise to be the best, and some are good. However, you might want the help of a representative from Fixed Rate Mortgage in Pittsburgh, PA to help you sort through the best mortgage for you. Interest rates can range from 3 percent to 5.75 percent for a 30 year fixed. The terms vary considerably as do the closing costs.
All of these costs can be sorted out by someone associated with Fixed Rate Mortgage in Pittsburgh, and they will help you determine which mortgage is best for you depending upon:
1. Your credit history and score
2. Your job history and your job future
3. Previous mortgage payment history
4. Down payment available
A mortgage broker associated with Fixed Rate Mortgage in Pittsburgh, PA will know which mortgage company will want to give you a mortgage, and they will know if there is more than one mortgage company for you to choose from.