What is a Fixed Rate Mortgage?

A fixed rate mortgage is a loan in which the interest rate remains constant over the life of the loan. The most common fixed rate mortgages are 15 and 30 year terms,although 10, 20, and 25 year terms are also available.Fixed rate mortgages are popular in the U.S. because interest rates are constant over the life of the loan and people like the predictability and stability of fixed rate mortgages.

Making the Choice
As always your payment will be based on the interest rate you receive, the total amount of the loan and the actual interest amortized over the total term of the loan. It’s important to remember to choose a payment that fits comfortably within your budget while providing the most value for your dollar.

Our expert loan officers will work with you closely to help you make the right decision.

$1000 Monthly Payments – How Do the Numbers Add Up For You?
For most people, determining how much they spend on a home comes down to how much money they can dedicate to monthly payments. You can approach this calculation in a couple of different ways. And what you decide really depends on your mindset in how you view a home. Below are examples of how 2 different families may manage $1000 monthly house payments.

15 Years for the Budget Minded Family
A young, budget minded couple with a long term focus may want to pay off their home as quickly as possible. They will probably be interested in a 15 year mortgage, with a manageable monthly payment.

The budget minded couple will be able to afford a $135,000 home to stay within their $1000 monthly budget, while working toward their 15 year plan. At 4.26%, their home will be paid in full in 15 years, with a manageable $1016 monthly payment. They will pay total interest of only $47,927.