Fixed-Rate Mortgage Programs

Fixed-Rate Mortgage Loan Information

Most homeowners are familiar with the traditional fixed-rate mortgage. This type of loan provides an interest rate that does not change for the life of the loan, typically ranging from 10 to 30 years. Any adjustment to the borrower’s monthly payment will only be due to increases in external charges such as property taxes and insurance.

Fixed-rate mortgages are the best option for individuals who prefer the security of knowing that their monthly principal and interest payment will remain unchanged. It’s also a good choice if you plan on staying in your home for a long period of time (more than 10 years). Individuals who do not anticipate a significant increase in their income in the coming years may also benefit from choosing a fixed rate mortgage.

The downside of a fixed-rate mortgage is that in changing markets, prevailing interest rates may drop below the borrower’s permanently fixed interest rate from time to time.