One Year Fixed Rates Spruce Grove

Most Spruce Grove residents don’t know about the 1-year fixed rate mortgage. Only five percent of Spruce Grove mortgage customers have this type of mortgage. Yet it has many benefits over the alternatives

What Is a 1-Year Fixed Rate Mortgage?

A 1-year fixed rate mortgage is a type of loan where the interest rate stays the same for one year. At the end of the year, you can renegotiate the loan, which gives you some of the benefits of an adjustable rate mortgage without the risk of having a sudden increase in your monthly payment. You can renew the mortgage for another one-year term with the same interest rate or for a longer period, like five years, and lock in the current interest rate.

Who Should Get a Fixed Rate 1-Year Mortgage?

A 1-year fixed rate mortgage is a type of home loan where the interest rate stays the same for a one-year period. This means that the monthly payment won’t change for the entire year. After the one-year term, you can renew the mortgage and choose a new interest rate for the next year. This is a good option for people who are buying a home but might not stay in it for a long time. If you do move, you can break the mortgage without penalty or find a better home loan. Also, having a 1-year fixed rate mortgage is a good choice for those with improving credit because they can look for better interest rates. Talk to a Spruce Grove mortgage broker for more information on loan terms.

Talk to a Spruce Grove mortgage broker to find a lender that offers this mortgage product.