Fixed Rate Loan

No. Mortgage rates and loan terms can vary among lenders, it pays to compare loans offered by various lenders. The amount of the down payment and other factors can vary among lenders. Its wise to compare loans offered by several lenders and to be sure you understand all aspects of the loan terms.

Typically, a fixed rate loan will have the same terms for all borrowers, as these loans are often sold by lenders. If customization is what you are looking for, an adjustable rate mortgage might be a better option for you.

You can refinance your fixed rate mortgage; however, you will need to apply for a new mortgage, and our underwriting standards will apply at the time of your new application. This might make sense if interest rates have decreased since you took out your current loan.

A fixed rate loan offers predictability and stability. Your payment and the term of your loan are fixed, allowing you to plan and budget around this payment. This can be a great option for someone who is planning to stay in their home for a long period of time.

The rate and payment on a fixed rate loan are fixed for the entirety of the term of the loan. The lender cannot increase your home loan interest rate or your payment regardless of the direction of interest rates or the economy.

Your payment will likely be higher for a fixed rate loan than the payment for the initial fixed term of an adjustable loan. The trade-off is stability and predictability in your payment over the life of the loan. The overall cost of a fixed rate loan may be less over time than an adjustable rate loan.

Over the life of the loan, you could pay more interest on a longer loan term versus a shorter loan depending on the rate. The trade-off is a lower monthly payment on a longer loan. A shorter loan period may allow you to pay off your home sooner and save money on the interest paid over the life of the loan.