Fixed Rate Mortgage Predictable, for the long haul.
Interest rate and payments remain the same for the entire term of the loan. Common terms are 30, 20, 15, and 10 years.
Interest rates on Fixed Rate Mortgages are still very low!
If you plan to stay in your home for the long term, a consistent payment that never changes can help you prepare for your financial future.
Plan your budget with a consistent mortgage payment at a low rate that will stay the same through the life of your loan.
Common types of fixed rate mortgages
The 15-year mortgage
You will pay less in interest. If you borrow $100,000 to purchase a home at a 4% interest rate, paying over a longer period of time will mean more interest on the money borrowed. So, a 15-year mortgage can significantly cut down on the interest that you pay. Add to that the lower interest rates that are often available for 15-year mortgages and you could have some big savings available.
Your monthly payment will likely be higher. Even with the lower interest rate, you will probably have a slightly higher payment with a 15-year mortgage. This happens because you are paying more towards principal from the beginning. But, you will be mortgage-free in half the time, which is no small feat.
The 30-year mortgage
You will pay more in interest. Longer mortgage means more interest charged. This is how banks and other lenders make their money. They loan you, the borrower, money and collect their interest over the 15 or 30 years it takes you to pay them back. Your monthly payment will likely be lower. Because you are spreading out your payments over a longer period of time, they will almost always be lower with a 30-year mortgage. If your monthly budget is tight, this may be a better way to go.
How it Works
- Monthly payments are based on interest rate, principal loan amount, and amortized interest over 30 years. With a Fixed Rate Mortgage, your interest rate will never change, even if market rates increase!
- Your payment will not change throughout the life of the loan.
- Your actual payment will vary based on your situation and the current interest rates when you apply.
- Pay your mortgage off at any time without pre-payment penalties.
Have questions? Give us a call! One of our mortgage specialists would be happy to answer all of your questions.
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Fixed Rate Mortgage FAQs
What is a fixed-rate mortgage?
A fixed-rate mortgage is a home loan where the interest rate stays the same for the entire term — typically 30, 20, 15, or 10 years. Your principal-and-interest payment never changes, even if market rates move.
What term length is best?
30-year terms keep monthly payments lowest. 15-year terms have higher payments but cut total interest paid by roughly half. We model both side-by-side based on how long you plan to stay in the home.
Can I refinance a fixed-rate mortgage later?
Yes. If rates drop meaningfully or your financial picture changes, you can refinance into a new fixed-rate or different loan type. There is no prepayment penalty on our standard fixed-rate products.
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