Fixed Rate Mortgages

A fixed rate mortgage guarantees you an interest rate that stays the same from the time you close on your mortgage until you make your final payment. This keeps your monthly payments consistent and makes your budgeting simpler.

Fixed rate mortgages are a good option if you plan to live in one place for many years. Your interest rate won’t be affected by market fluctuations, so your monthly payments won’t change. If market rates do decrease during the life of your loan, you may be able to refinance your loan in order to take advantage of this and save money. Fixed rate mortgages are available in terms ranging from 10-30 years.

Fixed Rate Advantages:

• Your interest rate and monthly payments won’t increase, regardless of the market
• You may be able to refinance to take advantage of decreases in market rates

Fixed Rate Disadvantages:

• Your initial rate may be higher than what you’d get with an adjustable rate mortgage, resulting in higher monthly payments
• Your interest rate doesn’t automatically decrease just because market rates have, other factors apply

Eligibility

In order to qualify for a fixed rate mortgage, you must have sufficient income and a strong enough credit history to demonstrate that you will be able to repay your loan.