20 years at 6%. Is there ANY possibility that our interest rate could go up depending on the economy? Any sneaky tricks the bank could have played on us? I'm getting paranoid with all these foreclosures. It's not an ARM, its fixed.
2007-03-22 05:34:33 · 3 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
In your closing package there is a 3 page document called The Note. Read it just in case. But I haven't seen any dirty tricks with fixed rate mortgages yet, and I don't think there is one in your case. 6% for a 20 year fixed loan sounds reasonable, so it should be all good. If it was 3% I would be worried.
2007-03-22 05:41:02 · answer #1 · answered by Alexander K 3 · 0⤊ 0⤋
Nope. That's locked in for for 20 yeers unless of course you have a fixed rate spread to an index. Which is typically what you get so if you have say a rate of Prime plus 1% fixed, then the rate only adjusts if the index (in this case, prime rate) adjusts). The spread remains fixed......it's complicated to explain but that is how rates are issued....it is based on a spread to an index...if the index shifts, then the overal rate also shifts but the spread remains the same.....if however, your rate is shown as 6% fixed, then it's going to be 6% fixed for 20 years...
2007-03-22 13:14:06 · answer #2 · answered by boston857 5 · 0⤊ 0⤋
If it is fixed, it is fixed. It won't go up. Read over the fine print and everything to be sure that it is fixed for the life of the loan. If it really is fixed though, you do not need to worry. That is one of the benefits of having a fixed rate.
2007-03-22 12:39:08 · answer #3 · answered by moonman 6 · 0⤊ 0⤋