Fixed Rate Mortgages / Fixed Rate Loans
The fixed rate mortgage has long been the most popular home financing loan. With an interest rate that never changes, it provides stable, predictable monthly payments throughout the term of the loan. Fixed rate mortgages can be good for first time buyers and those on a budget who needs the stability of a fixed monthly repayment. When you refinance with a fixed rate mortgage you have the security of knowing the exact amount you will repay each month will not change. This is important if you plan on staying in your home for a longer than five to seven years
The traditional fixed rate mortgage is the most common type of loan program, often referred to as the plain vanilla loan, where monthly principal and interest payments do not change during the life of the fixed rate mortgage. Fixed rate mortgages are available from 10 to 30 years and can be paid off at any time without a pre-payment penalty. This type of mortgage is structured, or “amortized” so that it will be completely paid off at the end of the loan term.