Fixed rate mortgage loans

Fixed Rate Mortgage Loans

Fixed rate mortgage loans are probably best for you if you plan on staying in your home for the long term. This type of loan has a fixed interest payment for the entire term of the loan, which is usually 15 or 30 years. A fixed rate mortgage loan is also probably for you if you want the security of having a loan payment that does not change.

Benefits of a fixed rate mortgage loan

  • You are protected from rising rates. Since your rate is fixed, based upon market interest rates that were locked in at the time you finalized your loan, you are not affected by the interest rate environment over the life of the loan.
  • Fixed payment ever month over the term of the life of the mortgage loan.

Get fixed rate mortgage loan if you meet the following criteria:

  • You want peace of mind from having a fixed payment every month.
  • You have a reliable income stream to pay for this type of a loan (because you are paying more for this type of a loan when compared to an ARM loan that is in the first few years of it's term).
  • You are probably going to be in the home for 5 or more years. As each year progresses, more of your income goes towards principle. The reason for this is, since this mortgage costs a little more, and in the beginning of the loan period, most of your payments go towards interest. As the years go by, however, more of your payment goes towards principle and you will find your equity increasing rapidly towards the end of the loan period.
  • Your down payment is not as high when compared with most adjustable mortgages.

What is the next step?

America’s Lending Partners’ free loan request service will match you with up to four lenders to help you lower your interest rate.

Good Luck!

Fixed rate mortgage loans picture

Todays Tip!

I've saved thousands for my kids college fund without contributing one cent!

Click Here to Find Out How!