Nashville Mortgage Brokers
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Your Trusted Source for Nashville Mortgage Brokers
Serving all of Tennessee and Nashville |
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Mortgages
can be a confusing business to some. With all the different
types of loans and terms used like points, adjustable rates,
escrows, closings, and PMI it is easy to get a little mind
boggled. One of the goals we have here at Guaranty Trust
is to make sure you understand and are educated about the
mortgage process. This section is our Frequently Asked Questions
area. Here you will find commonly asked questions about
the mortgage process. E-mail us if you have any questions
you would like answered.
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| What is the difference between fixed rate and variable rate mortgages? |
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| A fixed rate mortgage is a loan where the principle and interest payment never change during the life of the loan.
A variable rate mortgage is a loan where the interest rate can change periodically. The changes in the interest rate are tied into the market rates that exist at the time the rate is subject to change. They usually offer lower interest rates than fixed rate mortgages, but can adjust upward if interest rates go up. There is a predefined cap which defines how high the interest rate can adjust.
Fixed rate mortgages are beneficial to those who are on a fixed income, (adverse to interest rate change) and those who prefer fixed payment schedules.
Adjustable rate mortgages are advantageous for those who do not plan to stay in their home for a long time, for those borrowers who do not qualify at higher fixed interest rates, and those who can financially handle fluctuating payments. |
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Guaranty Trust - Expert mortgage brokers for Nashville mortgages and the market leader in home loans throughout Nashville and the Tennessee area. We have several great locations with the most knowledgeable mortgage brokers in Nashville and across Middle Tennessee to meet the individual needs of our clients.
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