Fixed Rate Mortgage

What is a Fixed-Rate Mortgage?

A fixed-rate mortgage, as the name implies, is a mortgage in which the interest rate on the loan note is fixed, or stays the same, for the duration of the loan. In a fixed-rate mortgage, the customer will pay the same amount each month until the loan is paid-off. With each successive payment, the customer is paying off more and more of the principal loan amount and a lesser portion of each payment is going towards interest payments, reducing the principal amount of the loan over time. Because the rate is fixed, the customer’s monthly payment amount is not at risk of increasing because the interest rate of the customer’s loan is not tied to the market.

Fixed-rate mortgages are offered with different terms, or length of time to pay off the note. Generally speaking, the shorter the term, the lower the interest rate will be and the faster the customer will pay off the customer’s home.

Which Type of Customer Benefits From a Fixed-Rate Mortgage the Most?

A fixed-rate mortgage is usually a better choice for customers who plan on staying in their homes for many years. A fixed-rate mortgage is also well-suited for customers who want ease of budgeting and who do not want to worry about watching interest rate changes in the market. Fixed-rate mortgages, by virtue of their fixed monthly payments, are easier to predict the monthly cost to the customer’s personal budget.

Customers who don’t expect to be in their home for many years or who are looking for the lowest current interest rates may be more interested in our Adjustable Rate Mortgages (ARMs).

Summary of Fixed Mortgage Rates

Offers the same interest rate for the life of the customer’s loan which means that the customer’s monthly principal and interest payment remains constant. The predictability makes it easier to set the customer’s budget

Fixed-rate mortgage terms are usually offered for 15, 20, or 30 year terms

Interest rate might be slightly higher than adjustable-rate mortgages (ARMs)

Better choice if the customer plans to stay in his/her home for many years

The American Interbanc Mortgage Difference

At American Interbanc Mortgage, we focus on providing some of the lowest cost mortgages in the market. Because we work on a low-margin model, the cost savings are passed on to the customer. We offer a variety of terms for fixed-rate mortgages and can close most loans in 30 days or less, if the customer gets us his/her loan documents in a timely manner. Call one of our Loan Officers today, at 1-800-724-0004, to find out what great rates we provide.

Talk to a Loan Specialist Today

We want you to feel confident about purchasing or refinancing your home. Our experienced loan specialists are here to answer any questions or to address any concerns you may have. Get in touch today to lock in your custom rate or to begin the application process.