Definition
A Fixed-Rate Mortgage is a type of home loan where the interest rate remains the same for the entire duration of the loan. Fixed-Rate Mortgages are the most common type of mortgage because they offer stability and predictability in monthly mortgage payments.
Monthly payments remain the same for the life of the loan, providing predictable budgeting. Protection from potential future interest rate hikes. Easier to understand and plan for than Adjustable-Rate Mortgages. Security of knowing your monthly payment won't change, which can be particularly helpful for first-time homebuyers or those on a fixed income.
The Types
30-Year Fixed-Rate Mortgage
The most popular type of mortgage with a fixed interest rate for 30 years.
20-Year Fixed-Rate Mortgage
Similar to the 30-year mortgage, but with a shorter term and slightly higher monthly payments.
15-Year Fixed-Rate Mortgage
Offers the shortest term of fixed interest rates, but typically has the highest monthly payments.
10-Year Fixed-Rate Mortgage
Rarely offered by lenders, but a good option for those who can afford higher monthly payments and want to pay off their mortgage quickly
The Benefits
Builds equity faster than Adjustable-Rate Mortgages. Provides a stable payment schedule, making budgeting and financial planning easier. Can be refinanced at any time if interest rates drop, allowing homeowners to potentially save money on their monthly mortgage payment.
Interest rate trends of fixed-rate mortgages
Interest rates on Fixed-Rate Mortgages are influenced by a variety of factors, including economic conditions, inflation, and the decisions of the Federal Reserve.
Historically, Fixed-Rate Mortgages have tended to have higher interest rates than Adjustable-Rate Mortgages, but provide more stability and predictability in monthly payments.
Tax benefits of fixed-rate mortgages
Interest paid on the mortgage is tax-deductible, reducing the overall cost of borrowing.
Potential for significant tax savings, especially for high-income earners.
Fixed-rate mortgage programs
Conventional Fixed-Rate Mortgages:
Offered by private lenders and are not insured or guaranteed by the government.
FHA Fixed-Rate Mortgages:
Insured by the Federal Housing Administration and require a lower down payment than conventional loans.
VA Fixed-Rate Mortgages:
Guaranteed by the Department of Veterans Affairs and are available to eligible veterans, service members, and surviving spouses.
Swift Programs
Discover home-ownership with our tailored loans. Our expert team ensures you get the perfect loan for your unique needs.
Have Questions?
Below you can find the answers to frequently asked questions.
Anything Unclear or Need Some Help? Relax, We Are Here for You 24/7
Relax and take comfort in knowing that our 24/7 support ensures you're never alone on your financial journey.
Customer Service
Please provide your query, and we will assist you as quickly as we can.
+1 ( 888 ) 499 - 9060
info@ameritrust-mortgage.com
Address: 17341 Irvine Blvd., Suite 285, Tustin, CA 92780
Privacy | Terms & Conditions | Sitemap
© 2024 - Copyright - Powered by Maple54