There are plenty good reasons why Wisconsin has garnered the nickname “America’s Dairyland,” and one of them is because of its strong and thriving agricultural industry. The other sectors that also contribute to its economy include information technology, tourism, and manufacturing. Residents also take pride in their beautiful cities, including Madison, Appleton, and Janesville.
However, even if the state remains one of the most affordable places in the country to buy a house in, most home buyers still need to depend on mortgages. And they have two distinct types of housing loans to choose from: the fixed-rate and the variable-rate (also commonly referred to as adjustable-rate) mortgages.
Consumers have to know what sets these two apart, as it will help them determine which ones is better suited for their budget, needs, and preference. Their knowledge of the differences between the two will also help them develop a sound plan for mortgage management.
Feelings of ease that no matter how the market performs, their interest rate will stay the same throughout their chosen term.
Security of easily-predictable monthly mortgage payments.
Low monthly payments for the entire duration of the loan contract.
A house to stay in for a long period of time.
Prioritize having the lowest possible interest rate, even if it only applies to the first few years of the mortgage term.
Only wish to reside and occupy the same house for a short period of time.
There are many different factors lending institutions use to measure the eligibility of mortgage applicants, and one of them is credit score rating. The higher the FICO score is, the greater a borrower’s chances of securing a loan, and one with a lower interests rate. Those who have a poor credit score, on the other hand, can expect to have some difficulties securing a mortgage. And even if they do qualify for one, they most likely would have to deal with a higher interest rate.
This is why consumers should make sure their credit score report doesn’t have any mistakes, or that they first polish it before sending in a loan application.