Fixed rate
mortgages are also popular and in demand
during times of historically low
interest rates. The majority of
homeowners fix their interest rates
while they believe the cost of borrowing
is cheap, therefore locking in the low
rates well into the future.
On the flipside, while fixed rate
mortgages provide borrowers with some
advantages, there are also several
disadvantages.
Fixed interest rates are usually
slightly higher than current variable
rates. Also, If a fixed interest rate is
locked in for a period of time and the
variable rate for the same mortgage
product remains lower throughout that
same period of time, the borrower will
pay more interest on their mortgage than
required.
Additionally, once the fixed rate period
expires, the interest rate will convert
to the lender’s SVR. It is therefore
advisable that borrowers assess your
mortgage situation before the
termination of the fixed rate period.
It is also important to note that most
lenders charge an arrangement fee for
their fixed rate mortgages. Therefore,
borrowers should assess whether the
estimated future savings in interest
that can be made by fixing the interest
rate is not outweighed by any upfront
arrangement or brokerage fees that must
be paid.
Borrowers, it’s a good idea therefore to
assess the overall expected cost savings
in combination with the ability to
manage your household budget more
effectively, against any upfront fees
that may be charged, before applying for
fixed rate mortgages.
To contact a mortgage consultant –
e-mail
lucier@babbalu.com!
View all of
Lucie & Alberto's Blogs
Lucie's Bio
Lucie
Rivera is the Human Resource Generalist at The
Village for Families and Children. She leads
recruiting and retention for a 400 employee social
services agency. Prior to the Village, Lucie spent
the majority of her HR career within the financial
services industry. During her transition between
corporate and non-profit, she took a strong interest
in the mortgage industry and decided to take the
plunge.
She started her new career with a small firm where
she originated loans including acting as the
Community Liaison; specifically to reach the
underserved, Hispanics, West Indian and
African-American market. She facilitated first time
homebuyers and credit seminars to those families who
expressed an interest in purchasing a home.
This was important to her and she was very
passionate about educating the community.
I remember vividly the day “my Papi” took the whole
family to see potentially our “new home”. We were
moving from the projects, Charter Oak Terrace and
moving to the suburbs, how exciting! A backyard
where all three of my sisters could play, run wild
and feel free”, says Lucie. Her philosophy is
“homeownership = families”. When you own a home, not
only do you provide a stable environment for
children but it also teaches them about
responsibility and setting goals vs. not looking
ahead or forward to the future. It’s one of many
challenges we currently face in our community,
specifically with the youth.
Lucie holds a Masters of Management degree in
Business Management/Human Resources. She is an
active member Board Member of Broad Park
Development.
Alberto's
Bio
Alberto
Mucciacciaro is a mortgage Consultant specializing
in Residential and Commercial financing. He
currently originates residential loans with Lendia,
Inc, a well established Residential Mortgage Company
licensed in 14 states and is also the owner of
Preferred Mortgage, LLC which is know strictly for
Commercial Financing.
Purchasing property is one of the largest financial
decisions that anybody will make in their lifetime.
For this reason he has set a goal for every client.
All his clients must understand the mortgage process
including the product that they are using, they must
be aware and comfortable with their payments, and
the purpose of the financial transaction must truly
suit their need for the loan. His business has been
sustained through referral business because each and
every borrower is treated as his most important
client.
Alberto has a network of lenders including FHA
providing him the opportunity to offer the best
program and rates available to meet the borrowers
current goals, credit, and financial situation.
Prior to starting a career in the mortgage business,
he worked in the business to business sales arena
for AT&T Broad Band Business Services. His duties
included establishing new accounts, maintaining
existing business accounts, securing contracts for
service and easements to extend plant for future
development through maintaining strong relationships
with customers.
He has a Business degree and schooling for auto
mechanics. He uses his automotive knowledge in his
spare time. He has a large Italian family and a
passion for cars and motorcycles.
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