Tennessee Fixed Rate Mortgages

Written by Kathleen Gagne
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You're much more likely to get the best Tennessee fixed rate mortgages when you do your comparison shopping online. Before you begin to search for a mortgage for the first time, you should understand that there are several types of mortgages you can get. The two major categories you will find are fixed rate and adjustable rate mortgages, often called ARMs. There are advantages to getting either type of mortgage based on your personal financial circumstances.

Fixed rate mortgages are simply those that charge the exact same interest rate for the life of the mortgage. This means that a 15-year fixed rate mortgage payment of $650 per month will be exactly the same for all fifteen years until the mortgage is paid off. Persons with good credit often opt for Tennessee fixed rate mortgages because they know that, as time passes, their income will likely increase while their payments will stay the same.

Tennessee Fixed Rate Mortgages Online

In contrast, adjustable rate mortgages start out with a low fixed rate for a specified number of years. Usually, the rates will stay the same for anywhere from two to four years. After the initial rate period expires, the mortgage rate will be adjusted up, or occasionally down, depending on the prime lending rate at specified intervals. These mortgages are good for persons with less-than-perfect credit or for those who do not intend to stay in their home for the long term.

Searching for Tennessee fixed rate mortgages online is a great idea. Here you will be able to apply with two or more mortgage companies, and you will be able to compare the rates they offer. Whether you are buying a home or refinancing your existing loan, you will be happy to learn that mortgage rates are still very low. This is a great time to buy your first home or to refinance your mortgage to lower your payments or to get money for college or home improvements.

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