Know When to Fix Your Loan
To fix or not to fix your loan is a common question. Another common question is for how long you should fix your loan rate. This can last from a few years to several years. Deciding on whether or not to fix is also essential as this can have great impact on the interest rate you will be paying and your total expenses.
Fixing the rate of your loan is a good idea, especially if rates are on the rise, and are becoming unaffordable. This is especially true if the trends show that there is little chance of the rates going down once again. Another good time to fix rates is when the rates are at an all time low. With rates set so low, paying that rate of interest for many years will ultimately save you a lot of money in the end.
The common length of time that rates are fixed is usually for a 3 year period. However, this can be fixed for a longer or shorter period depending on the financial environment. After the period lapses, the loan is usually transformed into a standard, variable rate loan.
For others who are unsure whether or not the interest rate is at a good level, in order to get the best of both worlds, a portion of the loan will be fixed, while another portion will be variable and will move up or down depending on the prevailing interests that banks and lenders charge.
The home loan experts have the expertise in dealing with such situations. They can help you decide on whether or not a fixed rate loan would be suitable to your needs. They can also give you different options for your home loan. They could suggest different types of loans, or suggest how long you should fix your loan for. They will ensure that you get a good deal especially on a 3 year fixed rate home loan
