Archive for the ‘Fixed Rate Mortgages Loan’ Category

We Have Fixed Rate Loans

A fixed interest rate loan is locked in before a closing and is set when the loan documents are signed. The interest rate on a fixed rate loan remains the same through the entire term of the loan and will not change when market indexes or other interest rates fluctuate. Fixed rate terms are generally set for 30, 25, 20 and 15 year amortized (planned schedule to pay down principle) loans. If you believe interest rates are at a low and you meet the necessary requirements to qualify for them and you plan on keeping the same loan for the entire 30 years or which ever fixed term you apply for, a fixed rate is right for you. Keep in mind that the average loan is only kept around 7 years for several reasons: 1. The borrower sells the house 2. The borrower refinances to cash out for home improvements or debt consolidation 3. The borrower refinances to lower there interest rate or lower there term. For these reasons it is sometimes unnecessary to lock in a fixed long term loan with higher interest rates and may find an adjustable interest rate with a 5 year fixed period and lower rate more suitable. Note: Ask yourself how long you will keep the loan before you will need to refinance or sell.

See our Mortgage Rates section for more details.