Mortgage Lender Brooklyn
Are you a first-time homebuyer and are wondering which mortgage option is best for you? Are you looking for a Brooklyn Mortgage? Well, look no further because you have come to the right place. With countless different options available on the market today, it can be confusing trying to figure out which one best fits your financial goals.
To help you get started, the best mortgage lender in Brooklyn, Yael Ishakis, has listed the main differences between a fixed rate mortgage and a variable rate mortgage.
What Is A Fixed-Rate Mortgage?
This option is where you are given a set interest rate for your mortgage. Even if the market changes, your rate will never fluctuate. Therefore, you will be able to budget accurately since you will have stable monthly payments.
This may be the best option for your financial situation if you are an organized planner because you will know exactly how much you owe towards your Brooklyn mortgage every month, and you will know the exact date in which your loan will be fully paid off. This choice gives homeowners peace of mind since they will never have to worry about their rates changing.
The downside to a fixed-rate mortgage, however, is that the interest rates are generally higher than a variable rate mortgage.
What Is A Variable Rate Mortgage?
A variable rate mortgage is also known as an adjustable rate mortgage (ARM). This mortgage has cheaper initial interest rates than a fixed-rate mortgage, but it is considered a more risky option. Without warning, your rates could increase or decrease overnight. This means you will not have stable payments and could end up paying more than you originally expected, hence why this option is riskier. On the other hand, the market could change and you could have significantly lower interest rates than expected, and therefore cheaper payments.
Depending on your financial situation and your personality type, a variable rate mortgage could be your best option. Before you commit to this loan, be sure and talk to your Brooklyn mortgage lender to make sure you can afford this option in case rates were to increase unexpectedly.
Contact Us
For more details on fixed and variable mortgages, please contact Yael Ishakis at 888-210-0706. She would love to work with you and help you choose the best mortgage option for your financial situation.
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