Fixed Rate Mortgage
A fixed-rate loan is one where the rate and payments are fixed for the entire loan term. Therefore, they are typically lower-risk loans. Homebuyers who choose this type of loan prefer the stability and predictability of knowing their interest rate and principal and interest payment will stay the same over the life of the loan. The principal and interest will not change; however, the monthly payment can change if the other items that make up your total monthly payment change. For example, if your property taxes or insurance premium go up and you pay this as part of your monthly payment, your total payment could go up. This combination of items is called PITI or principal, interest, taxes, and insurance.
The loan term refers to how long it will take to pay off the original mortgage. For example, the most common fixed-rate mortgage is the 30-year fixed-rate mortgage. Therefore, the longer the loan term, the lower the monthly payment since it is stretched out over 30 years.
If you are interested in a stable, lower monthly payment, the 30-year fixed rate might be for you. We also offer 15-year fixed rate loans, which will save you money on interest over the loan term. Paying your loan off more quickly saves you money in interest, but you need to be able to afford a higher monthly payment.
However, we can also tailor a fixed rate that best suits your needs. For example, most lenders and banks offer terms of only 10, 15, 20, and 30 years. We can provide you any term from 10 to 30 years in yearly increments. So, if a 27-year loan, 19-year loan, or 12-year loan works best for you, we can do it! Contact one of our experienced Loan Officers today.