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Fixed Rate Loans
A fixed-rate loan offers a consistent principal and interest rate payment
throughout the life of the mortgage loan. You can choose a variety of
repayment terms, normally being 15 or 30 years in length. The fixed-rate
mortgage is the ‘traditional’ choice and is still the most popular loan as it
offers stability and predictable monthly payments.
The longer the
term, the lower the monthly payments. With a shorter term, you will have
higher monthly payments but you will save on interest costs over the life of
the loan and build your equality faster.
Choose a
fixed-rate loan if you:
- Like the current rate and want to
keep it for the life of your loan
- Are purchasing or refinancing at a
time when interest rates are comparatively low
- Plan to stay in your house for a
long time
- Prefer regular payments with no
variations
- Are on a limited or fixed
income
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