Fixed Rate Mortgages:
With a fixed rate mortgage, you
know exactly
what your principal and interest
payment
will be every month. It won't
change because
your interest rate won't change.
There is
only one instance in which your
total payment
will change when you have a fixed
rate mortgage.
If you pay your home insurance
and real estate
taxes through your mortgage,
any time there
is a change in those costs, there
will be
a change in that part of your
mortgage payment
as well. If interest rates go
up, you're
protected with a fixed rate mortgage.
But,
you won't benefit if rates go
down. You can;
however, take advantage of falling
rates
by refinancing.
Consider a fixed rate mortgage if you:·
- Want the certainty of a fixed principal
and interest payment.
- Believe interest rates will probably go
up.
- Are on a fixed or restricted budget.
Which term is right for you?
A 30-year loan has lower payments,
but you
pay longer. Payments on a 15-year
or 10-year
mortgage will be higher, but
not two or three
times higher.
This example compares the principal
and interest
payments for a 30-year, 15-year
and 10-year
mortgage based on the same loan
amount and
rate.
Mortgage Amt Rate
#Years
APR
Principal
& Interest Paym't
$50,000 9%
30
9.006%
$402.86
$50,000 9%
20
9.008%
$449.87
$50,000 9%
15
9.009%
$507.13
$50,000 9%
10
9.013%
$633.38
(Assumes loan to value below
80% with no
PMI insurance. Rates shown are
for illustration
purposes only and do not represent
current
rates as published elsewhere
in the site.)
All these figures are great,
but what do
they mean? Well, let's compare
the 15-year
to the 30-year mortgage. By paying
$104.81
more per month...
you own your home in half the time!
and save a total of $53,550 in
interest!
Plus, unlike our simple example
above, interest
rates on 15-year mortgages are
usually lower
than on 30-year loans, so you
could save
even more. And if you compare
the 10-year
mortgage to the 30-year mortgage
in our example,
you save a total of $68,829.60
in interest
payments.
Many of our loan programs are
available with
fixed rates including FHA and
VA loans.
|
FHA/VA Mortgages
Jumbo Mortgages
Affordable Housing Program
Construction/Rehab Loans
Other Loan Options
Loan Calculator
Loan Comparison Chart
| Fixed Rate Mortgages |
With a fixed rate mortgage, you know exactly
what your principal and
interest payment
will be every month. It
won't change because
your interest rate won't
change.
Learn More
|
| Adjustable Rate |
Adjustable Rate Mortgages (ARMs) offer a
lower interest rate to
start, so your monthly
payments are generally
lower. But, the interest
rate is adjusted at times,
based on an "index". Learn More
|
|
