Opening A Mobile Business

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Mar 19, 2017, 4:44:03 AM via Website

Opening up a mobile business and I need help in my loan application. What is the advantage of fixed-rate mortgage? I am being offered two options in the credit union the other one is adjustable rate mortgage. The latter sounds appealing but some says fixed-rate is better. I'm not familiar with this terms I need help in deciding. I hope this is not too odd to ask here.

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Mar 23, 2017, 3:27:19 PM via Website

The main advantage of a fixed-rate loan is that the borrower is protected from sudden and potentially significant increases in monthly mortgage payments if interest rates rise. Fixed-rate mortgages are easy to understand and vary little from lender to lender.

  • Forum posts: 16

Oct 18, 2017, 5:33:52 AM via Website

The difference between fixed rate mortgage (FRM) and adjustable rate mortgage (ARM) is - for FRM, the interest rate is already set and will not change when you take out your loan; whilst interest rate for ARM might go up or down.

I suggest you apply for FRM because you will be secured and protected from increases in montly mortgage payments whenever the interest rates increase.

Unlike ARM which interest rate rises as time goes on especially when held long enough.

However, to qualify for FRM, you might need to pay for an expensive loan especially when interest rates in the market are high. But I think it's okay since after taking out your loan, you don't need to worry about the interest rate.

I hope you find this helpful! Good luck to your mobile business!

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