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Andrew Leavitt -Sales Manager NMLS#918821 New Heights Lending Corporate NMLS#1160570 6555 W Sahara Suite A108 LV,NV 89146

Fixed Rate Mortgage

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When it comes to setting up your mortgage, there are numerous financing plans out there, which is why our experts are here to help find the one that’s best for your wallet.  With a fixed rate mortgage there are great long term benefits, which is why many clients prefer this type of mortgage.  While there are some pitfalls, our brokers are here to guide you on whether a fixed rate or adjustable rate mortgage is most cost effective.  When deciding between the two there are a number of factors to consider, and our brokers are here to walk you through the process.

Benefits
For those deciding to take out a home loan with a fixed rate mortgage, there are a number of benefits that may contribute to that decision.  When mortgage rates are fixed, both the principal and the interest amounts don’t change over time.  What that means for borrowers is that they can be confident their monthly payments won’t alter, making it easier to creating a household budget.  When clients are purchasing their “forever home” we often recommend this type of rate because of how reliable it is.  Las Vegas mortgage rates can be variable, which is why a fixed loan helps protect from market rate fluctuations.

Pitfalls
Though there are many benefits to a fixed rate mortgage, there are some additional factors potential borrowers should consider.  Upfront costs in a fixed rate mortgage are generally higher, although that initial cost is relieved over time.  In the case of purchasing a home that won’t be lived in for a long time, this may not be the best option.  Additionally, qualifying for a fixed rate mortgage can be tricky during periods where interest rates are high, because fixed rate loans are not always affordable for the average household.  In these cases, we sometimes we need to find an alternative, with the option of refinancing in the future.

Adjustable Rate Mortgage
In contrast to a fixed rate mortgage, there are adjustable rate or variable rate mortgages.  Generally these loans start at rates below those of a fixed loan, but then rise over time based on market rates.  Meaning, the starting costs are lower than those of a fixed rate mortgage, but can increase over time.  This type of loan is significantly more complicated for the borrower, especially for longterm home owners.  Depending on the client’s situation, we can help them find the mortgage plan that make the most sense based on current costs and future predictions of Las Vegas mortgage rates.

Why a Fixed Rate
There are many benefits to a fixed rate mortgage which is why they are so popular with many of our clients.  They’re great for long term budgeting, since the interest rate stays the same throughout the course of the loan, having the potential to save our clients thousands of dollars.  In contrast, with an adjustable rate mortgage, our clients need to consider factors such as, such as down payment capacity and the ability to afford potentially higher rates. Our Las Vegas mortgage lenders closely follow the market trends so we can help our clients predict their rates, and make a more informed decision when deciding on their type of loan.

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