What is a Fixed Rate Mortgage Loan?

A Fixed Rate Mortgage Loan is a type of home loan where the interest rate stays the same for the entire term of the loan. This means your monthly mortgage payments won’t change, no matter what happens with interest rates in the market. It's a popular choice because it offers stability and predictability in your financial planning.

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Who is eligible for a Fixed Rate Mortgage?

If you’re looking to buy a home or refinance your current mortgage, you might be eligible for a Fixed Rate Mortgage. Eligibility is based on several factors, including your credit score, income, and the amount of the loan you’re seeking. Lenders will assess these factors to determine your eligibility and the interest rates for a Fixed Rate Mortgage Loan.

What are the benefits of a Fixed Rate Mortgage Loan?

  1. Predictable Payments: Know exactly what your monthly payments will be, making it easier to budget.
  2. Rate Protection: You're protected against rising interest rates, which is great if you plan to stay in your home for a long time.
  3. Stability: Offers peace of mind with stable payments, ideal for those who prefer financial security over variable rates.

What are the different types of Fixed Rate Mortgage Loans?

There are several types of Fixed Rate Mortgage Loans, including:

    1. Conventional Fixed Rate Mortgages: These are the most common, offering a fixed rate for the life of the loan, typically 15 or 30 years.
    2. FHA Fixed Rate Mortgages: Government-insured loans by the Federal Housing Administration with lower down payment requirements and fixed rates for 15 or 30 years.
    3. VA Fixed Rate Mortgages: Provided by the Department of Veterans Affairs, these loans are for eligible veterans, active-duty service members, and surviving spouses, with no down payment requirement and fixed rates for 15 or 30 years.
    4. Jumbo Fixed Rate Mortgages: These exceed the conforming loan limits set by Fannie Mae and Freddie Mac. They offer fixed rates for 15 or 30 years, suitable for higher-priced homes.

There are several Fixed Rate Mortgage Loans to choose from, each with unique eligibility criteria and interest rates. It's essential to carefully evaluate your options.

 

For more information or to start your application, contact MORTGAGEinc today, info@mortgage-inc.com!