Tips for Evaluating Mortgage Rates in Kalamazoo, MI

by | Jul 26, 2016 | Financial Services

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The time is finally right to make the move from tenant to homeowner. There’s money for a down payment, and the budget will accommodate a mortgage payment plus a monthly payment for the home insurance. What’s lacking now is financing to go along with that down payment. One of the features to consider closely has to do with the Mortgage Rates in Kalamazoo MI lenders are willing to extend. Here are a couple of points to keep in mind. A Fixed Right Works There’s a lot to be said in favor of focusing on fixed mortgage rates in Kalamazoo MI. A mortgage with a fixed rate means there is never any doubt about how the interest is calculated at any point during the life of the obligation. No matter what happens in the market, the rate is stable and secure. In terms of always knowing how much the mortgage payment is going to be, this approach is ideal for people who prefer to budget right down to the penny. Would a Variable Rate Be Better? Before dismissing a variable rate mortgage out of hand, spend a little time taking a look at the possibilities. Many consumers are surprised to learn that variable rate mortgages are structured to include a term when the rate is fixed. Typically, that fixed period is the first five to ten years of the mortgage. That provides plenty of time to see how the economy shifts before the fixed period ends. In the best case scenario, interest rates will incrementally drop during the fixed period. Once it’s over, the average rate begins to level off at a point that is older than that fixed rate. The result is the homeowner ends up paying less interest for the rest of the loan. Remember there’s always the possibility of refinancing if it looks as if interest rates will climb once that fixed period is over. In a sense, starting with a variable rate mortgage allows the homeowner to enjoy the best of both worlds. If now is the time to start looking for that dream home, contact us today and come in for a discussion about financing. Based on the credit rating and the financial stability of the applicant, it won’t take long to find the ideal mortgage arrangement.

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