Should I choose a Fixed Rate Mortgage? Fixed rate mortgages usually have terms lasting 15 or 30 years.
Throughout those years, the interest rate and monthly payments remain the same.
A fixed rate mortgage may suit you if you:
Like stability — You prefer to know far in advance how much you owe.
Think your income and spending will stay the same — You believe that what you can afford today matches what you'll be able to afford 5 or 10 years from now.
Monthly Payments Calculator
Things To Consider
Here's one thing to consider. Fixed rate mortgages typically have interest rates that are initially slightly higher
than adjustable rate loans. The higher rate means you'll make higher monthly payments. It may also mean you may need to make a
bigger down payment in order to be approved for a fixed rate loan. But down payment amounts vary by many factors, including loan type,
loan to value amount, lender, credit score — among other things.
Many experts say that if you plan to live in your home for more than 5 to 10 years, a fixed rate loan can be a very good idea.
They reason that if interest rates rise, the monthly payment on a fixed rate loan becomes lower than the payment on an adjustable rate loan.
But what if interest rates are lower in a few years? Like any mortgage, you may be able to refinance your fixed rate loan during times when interest rates drop.
The mortgage APR calculator is designed to help you compare different loan options. The APR calculator takes into account the stated interest rate of your loan and the different payments and fees associated with the loan. For example, a loan with a low interest rate and higher fees — such as fees paid for points and origination costs — might actually have a higher APR than a loan with a higher interest rate and lower fees.
Use the mortgage APR calculator and calculate the true cost of your loan.
15 vs. 30 Year Fixed Rate Mortgage Loans
Typically fixed rate loans have terms lasting 15 or 30 years. There are advantages and disadvantages to both loan terms.
Thirty year fixed rate loans are frequently used for home purchases, and are a good choice when interest rates are low. They provide a lower monthly payment than a 15 year loan,
greater leverage of your housing investment, and higher tax deductions for interest paid over the life of the loan. However, the rates are typically lower
for a 15 year loan, than a 30 year loan.
The obvious advantage of a 15 year loan is that it is paid off in half the time, which means higher monthly payments but saves thousands of dollars
in interest over the life of the loan. This allows you to build up home equity faster than a 30 year loan, enabling you to own your home free and clear sooner.
Amortization Calculator
Ever wondered what happens to your loan payments? Use our amortization
calculator to estimate how much of your loan payments will be applied towards both principal and interest on your fixed-rate loan.
Confused on what home loan option best meets your needs?
Call 1-800-909-8217 today for a no-cost, no-obligation home loan consultation from one of our knowledgeable loan professionals.
They can help you find our best loan product to help you meet your needs and realize your dreams.
Even if your credit isn't exactly perfect, we're eager to assist you with a
full spectrum of home loan options designed to help you put financial problems behind you.
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