Every first home buyer dreams of getting the lowest possible interest rate on a mortgage. Low interest rates mean lower monthly payments, which is a huge advantage in and of itself. Therefore, you shouldn’t hesitate to put in a lot of time and effort into looking for the most competitive rates available. If you find the best one, then your time and effort will be well spent.
That being said, there’s often a catch with low mortgage rates. Although you might find a mortgage loan with an impressively low rate, it’s usually available for only a few months after you acquire your mortgage. To make sure that the rate you pay for is the rate you want, you need to consider a fixed rate home loan.
Interest rates can change from day to day and they rise and fall in patterns that are difficult to anticipate. This means that the rate that you get when you apply for a mortgage may not even be the rate you will be paying for by the time your loan gets approved. A fixed rate home loan is an agreement between you and your lender that guarantees you a specific interest rate on your mortgage.
You can learn more about fixed rate home loans by talking to an established home builder that has plenty of real estate experience and can point you in the right direction.