Fixed Rate Loan
Lock into a low interest rate for the life of your loan
As its name implies, a fixed-rate mortgage is one where the interest rate on your home loan remains the same throughout its duration. This differs from a loan where the interest rate may change over time, such as an adjustable rate mortgage. Fixed rate mortgages are the most popular form of home loan in the United States largely due to the appeal of a consistent mortgage payment amount over the life of the loan.
In many instances, fixed rate mortgages have higher mortgage payments than adjustable rate mortgages. This is most often because the interest rate remains unchanged for the duration of the loan. Typically, loans with longer terms will have a higher interest rate than loans with shorter terms due to interest rate risk, or the possibility of fluctuating interest rates.
15 Year Fixed Rate
Lower interest rate,
paid off faster
Interest rate and monthly payment remain the same for 15 years
30 Year Fixed Rate
Lower payments than 15 year Fixed Rate
Interest rate and monthly payment remain the same for 30 years