Fixed rate mortgage loans are the most common home loan option on the market today. But just because it’s popular doesn’t mean that it is ideal for you. It is important to understand what a fixed-rate mortgage is before determining if it is the right option for you.
What Is a Fixed Rate Mortgage Loan?
With a fixed-rate mortgage, the interest rate and monthly payments remain consistent throughout the duration of the loan. While the monthly amount for interests and principle will change each month, your actual monthly mortgage payments will not.
A fixed-rate mortgage is an ideal loan for first-time home buyers who want consistent monthly payments and those who plan to remain in their home for a longer period. It also is ideal for those looking to refinance their home mortgage through a refinance program, such as the REFI NOW Program.
15-Year Versus 30-Year Fixed-Rate Mortgage Loan
The most common fixed-rate loan options are 15-year fixed-rate mortgage loans and 30-year fixed-rate mortgage loans. The primary difference is how long you have to pay off the mortgage loan. With a 15-year fixed rate mortgage, the payment may be slightly higher, but you are paying it off twice as fast!
Pros of Fixed-Rate Home Mortgages
♦ Stability – Monthly payments remain stable despite fluctuating interest rates
♦ Protection – Offers protection from sudden spikes in interest rates
♦ Easy-to-Understand – Straightforward mortgage terms makes it easier to shop around for best deal
Hassle-Free Mortgage Loans with Southpoint Financial
At Southpoint Financial, we understand that the home mortgage process can be complicated and stressful. You can depend on our experienced loan officers to walk you step by step through the entire process. We will take the time to answer all of your questions so you can get a clear picture of exactly what type of loan is best for your situation.
Find out if a fixed rate home mortgage is the right solution for you by calling one of our Southpoint Financial loan officers or emailing our office. Or, you can submit your application to pre-qualify for a home mortgage loan here online.
