Fixed-Rate Home Loans

Home loans
Lock in your rate and leave it.

What's a fixed-rate home loan? This loan type does just what it says: it keeps the interest rate fixed throughout the life of the loan. The principal and interest on your loan payment also doesn’t change.

If you plan to own your home for a long time, or if you just like the comfort of knowing that the principal and interest on your loan payment won’t change, a fixed-rate loan might be the way to go.

 

What are your fixed-rate mortgage loan options?

There are many fixed-rate home loan options for prospective homebuyers, and each option offers advantages. Additionally, specialty options exist, such as jumbo, FHA, VA, and USDA loan programs.

While this loan type is a great option, see how the pros and cons stack up.

 

Fixed-rate advantages:
  • You’ll know exactly how much interest you’ll pay over the life of the loan.
  • Peace of mind. The rate won’t change, and neither will your principal and interest payment change each month.

 

Fixed-rate loan disadvantages:
  • Fixed rates are typically higher than initial rates for adjustable-rate loans.
  • If rates drop below what you’re paying on your loan, you won’t be able to take advantage of the lower rate unless you refinance.

 

Fixed-Rate Home Loan FAQs
What determines the interest on a fixed-rate loan?

The interest rate is the cost of borrowing the principle loan amount. It’s determined by current rates and the borrower’s credit profile (including credit score).

Who should consider a fixed-rate mortgage?

If you have a steady income, the opportunity to buy while interest rates are low and do not want the risk of them increasing, or a plan for long-term residency in your home, a fixed-rate home loan may be a great option.

Is a fixed-rate mortgage for short-term homeowners?

Due to cost factors, a fixed-rate mortgage is better suited for long-term homeowners. An adjustable-rate mortgage may be a better option if a homebuyer wants to finance short-term.

How can I find out my monthly payment?

Your monthly mortgage payment is determined by your credit score, loan amount, loan term, and interest rate.

Interested in this loan?

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