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Ready to save a little more each month? If you’ve been putting off your financial New Year’s resolution, it’s not too late to get back on track. Whether you’re planning long-term financial goals or just want some extra cash this year, switching to a fixed-interest rate loan could be your smartest move.
Interest rates are still near historical lows but have already increased since January. Unfortunately, rates are expected to climb even higher this year. Transferring your mortgage, variable-rate credit card, or personal loan to a locked-in rate agreement with Metrum could save you thousands, and the best time to act is now.
Fixed-Rate Loans vs. Variable-Rate Loans
Variable-rate loans can be an excellent tool for the right situation, but fixed-rate loans have a better outlook in 2022. A low, variable interest rate can benefit borrowers in the early stages of a loan, but your payment risks rise sharply as interest rates change in the future. Fixed-rate loans keep the same interest rate for the entire term, no matter how interest rates may change.
A fixed interest rate offers the security of knowing exactly how much you’ll need to budget each month, which makes it easy to understand if a loan will work for your situation. You might pay more interest on the principal over time, but you will know what your payment will be each month over 15 or 30 years.
Home Equity Loans and Home Equity Lines of Credit are No Exception
A home equity loan allows homeowners to borrow a lump sum against their home, typically with a fixed rate. A home equity line-of-credit (HELOC) allows homeowners to get cash as needed over a set period before repaying it later, often as a higher, variable-rate loan. If your HELOC is nearing the end of its draw period or you’d like to avoid higher rates, transitioning it to a standard home equity loan could mean significant savings on future payments.
With interest rates set to rise this year, fixed-rate, fixed-term loans may help you keep more of your money for years to come. No matter your situation, Metrum Community Credit Union has the right loan products to help you save while reaching your financial goals!
HELOCs – Move to a home equity loan with a fixed rate. A lump sum HE loan can still help you reach your financial goals while keeping your payments consistent for your budget (with no guesswork down the line)!
Credit cards – Don’t put up with soaring interest rates! Transfer your higher-rate credit card balances to an MCCU Visa.
Personal loans – Move to a fixed rate that won’t change over time, even if you’re bringing it in from outside the credit union; our APR may be lower!
Lock Your Rate Today
Ultimately, a locked rate is easier to budget while offering peace of mind as rates rise. Everyone’s situation is different, so contact a Metrum Community Credit Union loan officer for a free, easy assessment of what options might be best for your situation. Our priority is to equip you with the tools you need to prosper, and we’re here to be your financial partners at every stage of your life!
