{"id":1690,"date":"2018-05-20T06:36:51","date_gmt":"2018-05-20T06:36:51","guid":{"rendered":"https:\/\/dreamhomefinancing.com\/\/?page_id=1690"},"modified":"2019-12-23T23:58:37","modified_gmt":"2019-12-23T23:58:37","slug":"FixedRate","status":"publish","type":"page","link":"https:\/\/dreamhomefinancing.com\/FixedRate.aspx","title":{"rendered":"Fixed Rate Mortgages"},"content":{"rendered":"

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Fixed Rate Mortgages<\/strong><\/h1>\n

If you are in the market to buy your dream home, you will have many mortgage options available to you. One of the significant decisions you will make is whether to get an adjustable rate mortgage<\/span><\/strong><\/span><\/a> or a fixed rate mortgage.<\/p>\n

How do Fixed Rate Mortgages Work?<\/strong><\/h2>\n

The interest rate on a fixed rate mortgage remains unchanged throughout the term of the loan, which means the amount of your monthly interest and principal payments remain the same for as long as you have the loan.<\/p>\n

The total dollar amount of the payment may increase but that would be a result of increases in taxes and insurance, both of which usually are included the mortgage payment.<\/p>\n

If you would like the peace of mind that comes with a stable interest rate payment, then a\u00a0fixed rate\u00a0mortgage may be\u00a0a great\u00a0choice for you. Borrowers often choose\u00a0fixed rate\u00a0mortgages when interest rates are low and are expected to rise<\/p>\n

30 year fixed rate mortgage<\/u><\/strong><\/h3>\n

With a 30 year fixed rate mortgage, the monthly interest and payments are fixed and amortized over 30 years. This type of mortgage is often selected by borrowers who want the security of a fixed rate for a long period of time. Payments and interest rates are typically higher than adjustable rate mortgages.<\/p>\n

30 year fixed mortgages are the most popular mortgage option that home buyers choose. In many instances, it is the wrong choice for them based upon their future plans.<\/p>\n

20 Year and 25 Year Fixed Rate Mortgages<\/strong><\/u><\/h3>\n

There are not many lenders who offer fixed rate mortgages with 20 or 25 year terms. Monthly principal and interest payments are fixed and are also amortized over 20-25 years. In reality, if you believe that you may be in the home for at least 20 years, then you may be better off just making additional principal payments over time to reduce the payoff period.<\/p>\n

15 year fixed rate mortgages<\/span><\/u><\/strong><\/h3>\n

Monthly principal and interest payments are fixed and amortized over 15 years. This type of mortgage is preferred by borrowers who want a\u00a0fixed rate\u00a0and the benefit of “rapid equity accumulation” through higher monthly payments.<\/p>\n

The payments on a 15 year\u00a0fixed rate\u00a0mortgage are the highest of any of the\u00a0fixed rate\u00a0programs, however the interest rate is\u00a0usually the lowest of all\u00a0fixed rate\u00a0loans except for the 10 year fixed rate loan.<\/p>\n

A 15 year mortgage allows you to have the ability to payoff your mortgage must faster. However, you do get stuck with the higher payment and do not have the flexibility to make lower payments during tough financial times.<\/p>\n

40 Year Fixed Rate Mortgages<\/strong><\/h3>\n

40 year fixed rate mortgages have a lower monthly payment than a 30 year fixed. However, there are not many lenders who offer this program. Click to read more about 40 year fixed mortgages<\/span><\/strong><\/a>.<\/p>\n

Click to get a rate quote on a fixed rate mortgage<\/span><\/strong><\/a><\/p>\n

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Who benefits from a fixed rate mortgage?<\/strong><\/h3>\n