Fixed-Rate Mortgage Programs

If you want stable budgeting for your home, a fixed rate mortgage gives you the security of a payment that will never change for the life of the loan.

What Are Fixed-Rate Mortgages?

Amortized over 30 years, these loans provide the stability of a fixed, unchanging interest rate for their entire term. This means you can bank on the total payment of principal and interest owed to remain the same each month.

How Long Are Fixed-Rate Mortgages?

The length of a fixed-rate mortgage can range anywhere from 10 to 40 years. The most common and traditional forms of fixed-rate mortgages feature either 15 or 30 year terms. Most people refer to a 30 year fixed mortgage loan.
The shorter the term, the less overall interest you will pay over the length of the loan.
The longer the term, the lower the monthly payment in general with fixed-rate mortgages.

Who Are Fixed-Rate Mortgages For?

People who are looking for a loan program where the monthly mortgage payment – consisting of principal and interest – will not change for the life of the loan.
Individuals who plan on staying in the house for more than 7 years.
Those whose monthly budget fluctuates and require a mortgage payment that doesn’t.

Remember that the fixed-rate mortgage loan programs available to you will depend on a number of different factors including your financial situation and location. If you plan to stay in your home for only a short time (less than seven years), you should consider an adjustable rate mortgage (ARM) which may carry a lower interest rate.