A fixed-rate mortgage is the simplest and the most common of all mortgage products. During the past few years, demand for fixed-rate mortgages increased due to historical low mortgage interest rates. With lower interest rates, payments of fixed-rate mortgages are more affordable, and therefore the borrower is able to qualify for a larger mortgage loan. The only difference among fixed-rate mortgages is the length of the mortgage term. The term is the amount of time it takes to pay off the loan. Fixed-rate mortgages allow a borrower to be sure of their monthly mortgage payments. Unlike an adjustable-rate mortgage, the payment amount is fixed over the life of the loan.
Fixed-rate mortgages have two distinct features:
- The interest rate and payments must be fixed over the term of the mortgage.
- The mortgage must be paid off completely at the end of its term.
Let us help you evaluate your personal situation and assist you in finding the right loan program that works best to meet your individual goals and needs.