When reviewing your mortgage options, there can be a lot of terms thrown around. You may see the term “fixed-rate mortgage” when reviewing your loan options. But what exactly is a fixed rate mortgage?
A fixed-rate mortgage is a loan that has an interest rate that remains the same over the life of the loan. If you intend to stay in your home for a long time, you may want to have the stability of a fixed rate mortgage loan. Planning your budget is easier with a set interest rate that will stay the same through the life of your loan.
Your monthly mortgage payment is based on the interest rate, loan amount and the term of the loan you choose. With a fixed-rate mortgage, the amount of principal and interest you pay each month will not fluctuate. The only things that may vary year over year are any property tax or insurance amounts that may be escrowed and included in your total mortgage payment.
Have more questions? Give us a call. One of our knowledgeable Mortgage Consultants will be happy to answer any of your questions and they can get you information on all of our great low rate loan products today.