Plan your budget with a consistent mortgage payment at a low rate that will stay the same through the life of your loan.
Common types of fixed rate mortgages
The 15-year mortgage
A 15-year mortgage can significantly cut down on the interest that you pay over the entire term. Add to that the lower interest rates that are often available for 15-year mortgages and you could have some big savings available.
The interests rates are generally lower on 15-year mortgages as compared to longer terms so your monthly payment will likely be higher. Even with the lower interest rate, you will probably have a slightly higher payment with a 15-year mortgage. This happens because you are paying more towards principal from the beginning. But, you will be mortgage-free in half the time, which is no small feat.
The 30-year mortgage
You will pay more in interest so you will see less going to principal in the beginning. Longer mortgage means more interest charged. Because you are spreading out your payments over a longer period of time, they will almost always be lower with a 30-year mortgage. If your monthly budget is tight, this may be a better way to go.
How it Works
- Monthly payments are based on interest rate, principal loan amount, and amortized interest over the term you choose. With a Fixed Rate Mortgage, your interest rate will never change, even if market rates increase!
- Your principal and interest payment will not change throughout the life of the loan.
- Pay your mortgage off at any time without pre-payment penalties.
Have questions? Give us a call! One of our mortgage specialists would be happy to answer all of your questions.