Fixed Rate Mortgage

Fixed Rate Mortgage

 

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.

Benefits:

  • 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

Drawbacks:

  • 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.

Benefits:

  • Lower interest rate
  • Build equity faster
  • If interest rates go up, yours is fixed

Drawbacks:

  • Higher monthly payment stays the same if interest rates go down
  • Interest rate stays the same even if interest rates go down

 

Get In Contact With BUYorREFI Financial By Phone or Email.

Licensing

BUYorREFI Financial (NMLS 1838307)
(MB-10000724)
Rhett Laufenburger NMLS# 221295
6532 West Leiber Place
Glendale, AZ 85310

Contact Us

BUYorREFI Financial
14780 W Mountain View Blvd
Suite #206
Surprise, AZ 85374

Number:
(480) 225-6699

Hours:
MON-FRI 9AM - 5PM
SAT-SUN By Appointment only

This material is not from HUD or FHA and has not been approved by HUD or a government agency."  Remove the pictures of money from the home page as advertisements containing graphics of checks or currency are seen as unethical by NRMLA Ethics Advisory Opinion 2012-01. On the Reverse Mortgage page, edit the answer to "What restrictions apply to the cash I receive from a Reverse Mortgage," by adding an asterisk after non-taxable with the explanation to consult a tax professional.



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