Things To Keep In Mind When Searching For A Fixed-Rate Mortgage

Fixed-rate mortgages are usually the most cost-effective option, but they come with a few caveats. Here are five things to keep in mind when searching for a fixed-rate mortgage: 

1. Make sure the rate you're getting is fixed for at least five years. If the rate goes up, your loan could become more expensive. Resolve all your queries regarding the 5-year mortgage rates at https://pekoe.ca/.

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2. Compare rates from different lenders to find one that's offering the best deal. Interest rates can change frequently, so it's important to lock in a rate as soon as possible.

3. Pay attention to fees and other terms that could increase your borrowing costs. For example, some lenders charge an origination fee, while others tack on higher interest rates if you don't pay off your loan on time.

4. Consider whether you qualify for a fixed-rate mortgage. Lenders generally require a credit score of 640 or higher and an income of at least 100% of the area median income (AMI).

5. Review your loan agreement carefully before signing anything to make sure there are no hidden costs or penalties associated with the mortgage.

If you're thinking of buying a home, you may be wondering what options are available to you. A fixed-rate mortgage is one option, available if you're looking to buy a home in the next few years.