The Fixed-Rate Mortgage

In the United States, the fixed-rate mortgage loan is the most common option for home mortgages. If you are considering purchasing a home, the loan packages you will be considering will almost certainly involve fixed-rate mortgages. It can be incredibly beneficial for potential new homeowners to be familiar with the terms of fixed-rate mortgages, as this can pay serious dividends down the road.

If you or someone you love has been having difficulty making regular mortgage payments and is facing foreclosure, the West Palm Beach bankruptcy attorneys of Eric N. Klein & Associates, P.A., may be able to help. Contact us today by calling 561-353-2800 today.

How a Fixed Mortgage Works

In a fixed mortgage loan, the lending institution charges a set interest rate that does not change across the term of the loan. These loans are usually offered in terms of 15- or 30-year packages, although longer or shorter terms are also available in certain situations.

For example, if a homeowner takes out a $100,000 15-year mortgage with an interest rate of 1%, he or she has 15 years to pay back the $100,000 principal with the additional compounding interest. He or she also has the option to pay back the loan sooner rather than later. The benefit of paying this loan off sooner is that the homeowner ultimately pays less in interest.

Contact Us

If you or someone you love is living with unsustainable levels of debt, the West Palm Beach bankruptcy attorneys of Eric N. Klein & Associates, P.A., may be able to help. Contact us today by calling 561-353-2800.