How Much Can I Payoff During the Fixed Rate Term?
The fixed-rate mortgage remains the most popular option among home buyers. They like the predictability that the product provides. Moreover, for several decades, it acted as the standard option. Lenders enter into a contract to fund fixed-rate mortgages. They can acquire a set rate for 30 years since they guarantee the funds to the wholesaler. However, homeowners do not have access to other features such as refinancing without incurring penalties.
Therefore, the fixed-rate payoff remains the same for 30 years. Since a contract exists between the lender and the wholesaler in addition to the lender and the homeowner, the lender will not accept extra repayments. The fixed-rate mortgage allows homeowners to automate their repayments. On the first of every month, the lender will debit the same amount without fail.
If the homeowner wants to refinance the mortgage to obtain lower repayments, they can. However, they will incur a break cost fee. In situations where the savings will surpass the fee, it’s worth executing the transaction. Sometimes homeowners simply want to change to a different lender.
Whatever the situation, Mortgage House is among the lenders that is willing to work with clients to help them achieve their financial goals. Once you become a client of ours, you receive access to our other products including our Mortgage House car loan.
Fixed-Rate Payoff Conclusion
Mortgage House will issue fixed-rate mortgages to homebuyers who request and qualify for them. Our specialists discuss the fixed-rate payoff so that homeowners understand the main risk of this option. Contact our lending specialists to find out more today.