Benefits of Cincinnati Fixed Rate Mortgages
The recent blow to the Cincinnati housing market brings greater opportunity for prospective Cincinnati homeowners. Due to record low Cincinnati mortgage rates, now is the best time to purchase a home if you have the down payment and credit history to support it.
If you’re not sure where to start your search for the best rates in town, try Cincinnati fixed rate mortgages, which offer a host of benefits to borrowers.
How Cincinnati Fixed Rate Mortgages Work
Unlike adjustable rate mortgages, Cincinnati fixed rate mortgages give borrowers the security of the same interest rate throughout the life of the loan. Borrowers, as a result, can anticipate how much their mortgage payment will be each month and budget accordingly.
However, there are possible disadvantages to this type of mortgage as well.
Since fixed mortgage rates don’t change, lenders risk losing out on extra money should mortgage rates increase in the future. That’s why Cincinnati fixed rate mortgages tend to have slightly higher interest rates.
Current average fixed rate mortgages in Cincinnati are about 4.12 percent for a 30-year fixed rate mortgage.
How to Get the Best Cincinnati Mortgage Rates
Improve credit: Borrowers with high credit scores possess competitive edge over those with poor credit history, and can negotiate with lenders for the best fixed rate mortgage loan rates.
Pay ahead: Prepayment is another way to reduce the total cost of a loan. Cincinnati residents should, however, determine if penalties apply with their specific fixed rate mortgage loan, and how it affects their loan.
Shorten term: If your income affords you the ability to commit to higher monthly payments, a shorter loan term can save you thousands of dollars in interest in the long-run.