2nd-Mortgage

The fixed rate mortgages are the mortgages for which the interest rate is fixed. This means that the borrower has to pay a particular amount as installment per month which would not change through out the period for which the loan is taken. Generally the fixed rate mortgages are of two types (Fixed mortgage rate for real estate, 2007). 1) Fixed mortgages for 30 years: This is the most preferred fixed rate mortgage, since for thirty years the amount to be repaid per month remains the same. The disadvantage is that if the bank’s variable interest rate falls below the fixed rate, the borrower would be at loss. For the risk taken for 30 years the lender might charge a higher interest rate. 2) Fixed mortgages for 15 years: The conditions are ... Read More »