Would a Fixed Rate Home Loan be in Your Best Interest?

Interest rates are currently at record low levels, but you can see the banks are increasing the variable rates on their own.  Some of my clients are starting to consider whether they should look at a fixed rate home loan.

When considering a fixed interest rate loan, you need to remember to do your homework and make sure you understand the advantages and pitfalls of fixing. Protection against rising interest rates and the knowledge that your monthly repayment will be held for a set period are the main benefits of taking out a fixed rate home loan. On the other hand, a lack of flexibility in the loan product and missing out on falling interest rates are seen by many as a disadvantage.  Many lenders will offer a “split” loan where part of the loan can be at a fixed interest rate and part at a variable interest rate.

Choosing the right home loan is not always a simple decision to make. For most of us, the exercise of finding the right loan is not only exhaustive – it’s also confusing. Amesbury Financial Solutions can help make your life easier. We are a locally owned and operated firm with 20 years industry experience, making us experts in all things mortgage related. We will perform a full loan assessment for you at no cost, leaving you better equipped to determine whether a fixed rate home loan is really in your best interest.