Fixed Rate Mortgage
Common Fixed-Rate Mortgages
Monthly payments for a 15-year mortgage are often higher, despite the lower interest rates. However, more of your payment goes toward the principal, allowing you to pay off your mortgage in half the time of longer loans.
Many homeowners choose a 30-year mortgage because payments are lower. Paying the balance is spread over a more extended period, making these mortgages ideal for individuals with a tighter budget.
How it Works
- Your monthly mortgage payments are calculated based on the interest rate, principal amount, and amortized interest over the duration. A fixed-rate mortgage provides a fixed interest rate that never changes, regardless of the market rate.
- Your payment won’t vary.
- Your payment will reflect your situation and the interest rate at the time of your application.
- You can pay off your entire balance at any time with no penalties.