A Fixed Rate Mortgage is just what it sounds like - a home loan that offers a fixed interest rate, one that will not change over the life of the loan. A homeowner is given a set number of years to pay back the money borrowed with associated interest.
Benefits of A Fixed Rate Mortgage Loan
There are many reasons a Fixed Rate Mortgage is the right choice for many homeowners. We’ve identified two key benefits on why this program might be right for you.
Fixed Payment – Since the rate is fixed for the entirety of the repayment term, you can be assured your principal and interest payment will not change.
Peace of Mind -The Fixed Rate Mortgage loan provides a stable rate and payment over the life of the loan. Unlike an Adjustable Rate Mortgage (ARM), where the interest rate can adjust or change, the rate you lock in today is the rate you’ll pay for the entire repayment term. Knowing the interest rate will remain constant allows buyers the peace of mind to budget accordingly.
Fixed Rate Mortgage Considerations
As you venture through the home finance process, there are several things to consider. For instance, the interest rate of a fixed rate mortgage may be slightly higher than mortgage loans with an adjustable rate. Since you are gaining the stability of a fixed principal and interest payment, it is possible that a loan with an adjustable rate has a lower initial mortgage rate. Choosing between these products is one of the few things to consider when choosing the right mortgage for you.
Don’t worry, we’re here to guide you through every step of the mortgage process with expert advice and service.
Interest and Equity
As with all new experiences, there is always new terminology to learn. We’re here to help with some of the most common terms a homeowner will hear during the mortgage process.
EQUITY: A common term used in the loan process is equity. What is equity? Equity is the difference between what you owe on your mortgage and what your home is currently worth. As you pay down your loan or your home value increases, your equity in your home will increase.
INTEREST: Another common term used throughout the finance process is interest. What is interest? Interest is the amount of money, in excess of the amount you borrowed, you’ll pay on your loan. With a Fixed Rate loan, a buyer will pay more interest and build equity at a slower pace than with a shorter-term loan. This is a small tradeoff for the lower monthly payment and longer term.
We’ve help thousands of borrowers, like you. A loan specialist is ready to guide and answer any questions you might have through the process.
What Are Today’s Fixed Mortgage Rates?
Mortgage rates change all the time. Rates are affected by several factors, including, but not limited to, market conditions, credit scores, equity, home type, and transaction type. Since you are borrowing money at a fixed rate, it is important to have the lowest rate possible.
We’ve built our reputation on providing the best rates on a daily basis. We have found that combining those great rates with outstanding customer service and expertise is a winning combination.
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Fill out a low rate quote request today to discuss your Fixed Rate Mortgage loan with one of our loan specialists.
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