Fixed Rate Mortgage
With a fixed rate mortgage, the interest rate does not change for the term of the loan, so 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.
Lower monthly payments than a 15 year fixed rate mortgage
Interest rate does not go up if interest rates go up
Payment does not go up, it stays the same for 30 years
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.
- Lower interest rate
- Build equity faster
- If interest rates go up, yours is fixed
- Higher monthly payment stays the same if interest rates go down
- Interest rate stays the same even if interest rates go down
Items required (for most loans);
- Last two months’ bank statements
- Most recent investment account statements
- Pay stubs for last 30 days
- W-2s and 1099s for last two years
- Last two years’ tax returns
- Real estate owned and rents collected
- Copy of settlement statement if you
- sold property in the last three years
- Purchase contract for new home (if you have one)