Fixed-Rate Mortgage Options

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 A fixed rate mortgage is a loan where the interest rate does not change during the entirety of the loan. If you appreciate the peace of mind of a stable rate, this may be the loan for you. A fixed rate is best used when interest rates are low and expected to rise.

Predictable monthly payments

What people generally like most about a fixed-rate mortgage is that they will know exactly what their mortgage payment will be each month for the entire term of the loan. That is, the payment of interest and principal stays steady because the interest rate is fixed for the life of the loan.

Advantages of a fixed-rate mortgage

Fixed-rate mortgages are a good choice if you:

  • Think interest rates could rise in the next few years and want to keep the current rate
  • Plan to stay in your house for many years
  • Prefer the stability of a fixed principal/interest payment to a payment that changes periodically (which is what happens with an adjustable-rate mortgage)

Qualifying for a longer-term loan can often be easier than for a shorter-term loan, because you don't need as much income.

How term affects interest and equity

In general, the longer the term of the mortgage is, the more interest you will pay over the life of the loan and the higher your interest rate will be, but your monthly payments will tend to be lower. The shorter the repayment term is, the faster you'll pay off and build equity in your home, though your monthly payments will generally be higher.

Fixed-rate mortgage loans are available in a variety of repayment terms, with 30, 20 and 15 years being the most popular.

If you want some personal help deciding what type of mortgage loan could be best for you, call one of our mortgage loan officers at 1.801.466.5055.

30-year fixed-rate mortgage

The 30-year fixed is one of the most popular mortgages. Many people like the fixed interest rate and lower monthly payments. But since the term of the loan is long, you'll pay more interest over the life of the loan than you would on a shorter-term mortgage, and you’ll build equity more slowly.

Prequalify now or call 1.801.466.5055 for more information.

20-year fixed-rate mortgage

A 20-year fixed-rate mortgage helps you pay off your home faster and build equity quicker than a longer-term fixed-rate mortgage. A 20-year fixed generally has a lower interest rate than longer-term home loans but higher monthly payments.

15-year fixed-rate mortgage

You generally pay a lower interest rate with a 15-year loan than you would for longer-term fixed-rate loans. You will pay less interest than you would with a longer-term loan and build equity more quickly. However, your monthly payments will be higher for a 15-year than they would be on a longer-term mortgage.

Other fixed-rate mortgages

Other fixed-rate mortgage options may include different terms, such as 25 and 10 years. In addition, there are fixed-rate interest-only mortgages that begin with low interest-only payments for a period of time before including payments on the principal balance.