Fixed Rate Mortgage
A fixed rate mortgage is when the interest rate is locked in till paid in full by the end of the mortgage loan term. Monthly payments for a fixed rate mortgage have interest and principal never changes. Therefore, the payments will be steady throughout the time of the mortgage loan. What makes fixed rate mortgages convenient is how the monthly payments are predictable instead of having to guess the varying changes with an adjustable rate mortgage.
Fixed rate mortgage has a down payment that can be as low as 5%. If you want predictable payments during the life of your loan, then fixed rate mortgage may be the best option for you. A fixed rate mortgage is very stable for the first time home buyers. It provides security in which they are informed in how much they will pay monthly until the loan is paid off. While the mortgage interest rates may fluctuate over time, you will always be sure that the interest rate you are paying will never change.
Among mortgage loan buyers across the nation, a fixed rate mortgage is commonly the most popular choice as more than 75% of mortgages are fixed rate mortgages. However, the longer the loan term, the more interest you will have to pay.
Get Started Right Away
At East West Mortgage, we provide you with competitive rates in today's market. A fixed rate mortgage is easier to understand in comparison to an adjustable rate mortgage, or other times known as ARMs. With lower interest rates, you can save thousands of dollars down the road by lowering your monthly payments. Fill out our quick application for a free quote to help get you started!
