Fixed Rate Mortgage

Fixed Rate Mortgage:

 

With a fixed rate mortgage, the interest rate does not change for the term of the loan; the monthly payment is always the same. Typically, the shorter the loan period, the more attractive the interest rate will be.

 

Payments on fixed-rate fully amortizing loans are calculated so that the loan is paid in full at the end of the term. In the early amortization period of the mortgage, a large percentage of the monthly payment pays the interest on the loan. As the mortgage is paid down, more of the monthly payment is applied toward the principal.

 

A 30 year fixed rate mortgage is the most popular type of loan when borrowers are able to lock into a low rate.

Benefits:

  • Lower monthly payments than a 15 year fixed rate mortgage
  • Interest rate does not go u
  • Payment does not go up, it stays the same for 30 years

Drawbacks:

  • Higher interest rate than a 15 year fixed rate mortgage
  • Interest rate stays the same even if interest rates go down

A 15 year fixed rate mortgage allows you to pay off your loan quicker and lock into an attractive lower interest rate.

Benefits:

  • Lower interest rate
  • Build equity faster
  • If interest rates go up, yours is fixed

Drawbacks:

  • Higher monthly payment stays the same if interest rates go down
  • Interest rate stays the same even if interest rates go down

Thinking of Purchasing a Home?

You can start the process by visiting our Purchase Assistant or by testing out different financial scenarios on one of our online calculators.

 

Considering a Refinance?

There are many ways to go when you refinance your home. Start by narrowing down your options based on your individual needs on our Refinance Advisor page.

 

Ready to start the home mortgage process today?

Complete a  secure online loan application or call me for a friendly chat and free mortgage consultation today at 707-763-6290

 

Questions about your California mortgage loan?

Or your California mortgage rates? We always strive to bring you the lowest mortgage rates in California. We always strive to bring you the lowest mortgage rates in California. Feel free to call us at (707) 763-6290, Click here to submit a question through our website or email to js@emortgages.com