What’s the Difference Between A Fixed Rate Loan and An Adjustable Rate Loan?

atlanta mortgage managersWhen you’re looking to refinance your home, it’s important to evaluate your options, including the different types of mortgages available, and your prospective loan rates. There is a distinct difference between a fixed rate mortgage and an adjustable rate mortgage, and our private mortgage lenders in Atlanta here at Simply Direct Mortgage will be happy to help you decide exactly which mortgage option is right for you.

The Types of Mortgages Available Through Our Atlanta Mortgage Lenders

At Simply Direct Mortgage, our mortgage lenders offer several different loan options. Through Simply Direct Mortgage, our mortgage managers can find the perfect loan to fit your particular financial situation.

The types of mortgages offered at Simply Direct include:

  • Underwater mortgages
  • Jumbo loans
  • Debt consolidation
  • Fixed mortgages
  • Adjustable rate mortgages

To learn more about mortgage management and the benefits of refinancing, please click here.

The Differences Between Fixed Rate Mortgages and Adjustable Rate Mortgages

A fixed or an adjustable rate mortgage loan is a loan that will allow you to purchase your home, while closing the gap between the money you have for a down payment and the overall purchasing price of the home.

Before you decide on whether to choose an adjustable rate loan or a fixed rate mortgage, it’s important to sit down and evaluate your budget. Afterwards, you should meet with your mortgage lender to make sure that you’re making the right financial decision.

The facts about adjustable rate loans are that:

  • The rate of your mortgage will adjust periodically over the life of the loan.
  • The loan terms are in increments of 3, 5, or 7 years.
  • Since the rate does change, it can be unpredictable.
  • The payments of your loan will rise and fall with the average interest rate.
  • The benefit of this type of loan is the fact that the rates are usually lower than fixed rate loans.

There are several differences between the aforementioned type of loan and a fixed rate loan.

The facts about fixed rate loans include:

  • Fixed rate loans have a rate that never changes regardless of the state of the economy.
  • If the prime interest rate on your loan goes up, you will never have to pay the difference because the lender will pay the difference.
  • Your principal and interest rate will never change.
  • However, fixed rate loans come with a higher interest rate than adjustable rate loans.

If you would like to learn more about fixed rate mortgages and adjustable rate mortgages, please click here.

Choosing Simply Direct

If you’re in need of either a fixed rate loan or an adjustable rate loan, our mortgage Simply Direct Mortgagemanagers at Simply Direct would love to help you! If you would like a complimentary consultation with any of our mortgage managers, please call our office today at 404-475-6270.

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