Set Interest Pre-Fixed Home Loans
The fixed rate home loan offers you a set interest rate for a pre-determined amount of time. Normally the length of time ranges from one to five years.
Buyers who appreciate certainty, as well as those on stringent budgets and first-time home buyers, are most likely to choose a fixed rate home loan.
Pros of Fixed Rate Home Loans
- You can budget easily because your repayment amount will stay steady for the set term of the loan
- Most lenders offer a fixed rate loan. This gives you multiple lenders to consider when searching for your loan
Cons of Fixed Rate Home Loans
- Because your rate will not change per the terms of your loan, you may miss the benefits of falling interest rates
- Extra repayments are usually not permitted during the fixed period of the loan
- Timing is important; you always stand the chance that rates can lower after locking in your loan