Fixed Rate Mortgage
What Is A Fixed Rate Mortgage?
As its name implies, a fixed rate mortgage is one where the interest rate on your home loan remains the same throughout its duration. This differs from a loan where the interest rate may change over time, such as an adjustable
rate mortgage. Fixed rate mortgages are the most popular form of home loan in the United States largely due to the appeal of a consistent mortgage payment amount over the life of the loan.
In many instances, fixed rate mortgages have higher mortgage payments than adjustable rate mortgages. This is most often because the interest rate remains unchanged for the duration of the loan. Typically, loans with
longer terms will have a higher interest rate than loans with shorter terms due to interest rate risk, or the possibility of fluctuating interest rates.
Fixed Rate Mortgage Benefits
The biggest benefit of a fixed rate mortgage is the fact that the interest rate does not change over time. This allows you to budget your finances and make a consistent, fixed payment over the duration of your loan. Fixed rate mortgages allow you to lock in an interest rate and principal payment for the entire life of your loan. Your rate and principal payment never increase, even if the market changes – giving you peace of mind.
Other benefits include:
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Competitive interest rates
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Locked interest rate for the life of your loan
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Easier-to-understand loan terms and paperwork
Get Pre-Qualified For A Fixed Rate Mortgage
Talk to one of our licensed Loan Officers to start the pre-qualification process and take the first steps in getting the best mortgage loan for your needs.
With flexible options, program expertise, and superior service, we’ll work with you from application to close to ensure a smooth loan process and create a loan program that meets your financial needs and goals.
This is not an offer for extension of credit or commitment to lend. All loans subject to program guidelines and final underwriting approval. Not all applicants qualify. Information and pricing are subject to change at any time and without notice. This offer cannot be used in conjunction with any other promotion. The content in this advertisement is for informational purposes only. Consult your mortgage loan consultant for further information. If any other entities are mentioned in this advertisement, they are not an affiliate of First United Bank or First United Mortgage Group. NMLS 400025. Copyright © 2024 First United Bank. All Rights Reserved.