Choosing Fixed-rate mortgages in Alaska
Many Alaska borrowers choose fixed-rate mortgages (FRMs) because of the certainty they offer. A fixed-rate mortgage is just that: a mortgage with an interest rate that will not change. The payoff schedule and monthly payments don’t change either and all of that makes budgeting much easier. Since FRM terms don’t change, there are never any surprises, never any balloon payments, and never any reason to refinance. Of course, if rates drop significantly, a borrower always has the option to refinance. The typical term of a FRM is 30 years, but they are also available for shorter and longer periods.
