Fixed Rate Loan

Fixed rate mortgages are when your interest rates are fixed, or locked in, for the loan's entire term. The traditional length of Fixed Rate Mortgages is 30 years, although 15-year loans have become a popular option when mortgage interest rates are lower.

A fixed-rate mortgage usually requires a minimum down payment of 3% to 5%, with the balance being financed over the life of the loan. The main advantage of the traditional fixed rate mortgage is certainty that your rate, monthly principal and interest payments will not go up. Your payment stays the same over 30 or 15 years.

A Fixed Rate Mortgage is recommended for you when:

• You are more comfortable with a predictable payment each month
• You plan to live in your home longer than five years
• Other obligations would suffer if your house payments increase
• It is anticipated that interest rates are going to increase
• There is a chance that your household income may decrease over the next five years