Fixed Rate Mortgage

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 up
·         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
 

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Cudjoe Key, FL 33042 St. Petersburg, FL 33708New Smyrna Beach, FL 32168

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Ohio Office

Columbus, OH 43082

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Pennsylvania Office

Monaca, PA 15061

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Licensing

Company NMLS #138740
We lend statewide in Ohio, Florida, and Pennsylvania
Ohio# MB.802202, Florida# MBR794, Pennsylvania Dept. of Banking License#21259
Consumer access to the National Mortgage Licensing Service to check our credentials.

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