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Fixed Rates vs. Adjustable Loans

Many homebuyers become caught up in the fixed rates vs. adjustable rates debate when it comes to a new home loan. It is true that if you are applying for a new home loan you do need to carefully weigh the options in terms of fixed rates vs. adjustable rates and select the type of new home loan that can really help you meet your goals. The good news is that it does not have to be that complicated. When making the fixed rates vs. adjustable rates decision, there are a number of questions to ask: *What can I offer a lender? When it comes to the fixed rates vs. adjustable rates – or any other loan, from a debt consolidation loan to a bad credit home mortgage loan to a home equity loan – lenders simply want to know that you will be able to honor your financial responsibilities. To do this, they look at down payments, home equity, credit, and other factors. When deciding the fixed rates vs. adjustable rates, you need to consider whether you make a safe borrower. If you do, you have the option of choosing most mortgages. If your credit is not perfect, consider that adjustable rates have requirements that are more forgiving. *What are my short-term goals? When looking at the fixed rates vs. adjustable rates question, look for the loan that will meet your immediate needs. Do you need a loan with low down payments? Do you need a loan that offers you low monthly payments? When deciding the fixed rates vs. adjustable rates question, do choose a loan that you can afford today. *What are my long-term goals? Since mortgages tend to be a long commitment, make sure that when deciding the fixed rates vs. adjustable rates debate you select a new home loan that meets your long-term needs. If you want to pay off your mortgage fast, you may want a fixed rate mortgage that lets you make additional payments with no penalty. If you want to be enjoy low payments and move within a decade, adjustable rate may be for you. The fixed rates vs. adjustable rates question is important, and taking some time to decide the best financing options for you is the smart thing to do. Just keep in mind that the fixed rates vs. adjustable rates question may not be as simple as it seems!


   




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