What Is A Fixed-Rate Mortgage?
A fixed-rate mortgage loan is a type of loan where the interest rate remains constant throughout the term of the loan. This is particularly popular with borrowers who like to know what their payment amount will be each month and that it is predictable without surprises.
Why Choose A Fixed-Rate?
The primary advantage to the fixed-rate mortgage is the fixed interest rate, which cannot be changed during the life of the loan regardless of fluctuations in the broader market. So, even if interest rates increase, your rate will stay the same. This is especially beneficial to borrowers who are planning to hold the property for the long term.
How long you plan on holding a property is one factor to consider when deciding on what term length of mortgage to choose. Mortgage terms go beyond the traditional 30 or 15-year and can even be 20 or 25-year lengths. The 30-year fixed-rate mortgage is the option chosen by almost 90% of homeowners today, making it by far the most popular selection.
Term length becomes a factor of consideration when calculating your mortgage costs. Generally speaking, the longer the term, the more interest you pay. Someone with a 15-year term, for example, will pay less in interest than someone with a 30-year term, although the 30-year payments each month will be less overall.
Crunching the numbers can start to feel a bit complicated, but don’t get overwhelmed! Our mortgage specialists at Preferred Mortgage Source are here to help whether you would like to consider a fixed-rate mortgage or explore other mortgage products we have available. Give us a call at
404-383-1003 or complete our easy contact form below. One of our experienced mortgage advisors will contact you soon.
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