Fixed Rate Mortgage

Fixed Rate Mortgage

When you can get a lower interest rate, you want to lock it in for the life of the loan, don’t you? Well, that’s what a fixed mortgage does. It locks your rate for the years of the loan.

Even if you’re not going to have your home or that particular home loan for a fixed amount of years — many borrowers get this loan. That’s because even if the future is unpredictable, your loan isn’t.

This type of mortgage loan gives you peace of mind that your payment will remain the same (unless your taxes or insurance change).

Are fixed rate mortgages popular?

Yes, borrowers love fixed rate mortgages because they give them predictability in their monthly budget.

Advantages of a Fixed Rate Mortgage

• Lower payments – with the longer term, your payments will be lower than shorter termed mortgages.
• Flexibility – you can pay extra on your principal if you want, but you can always pay the minimum payment if your budget is tight.
• Budgeting – with a fixed-mortgage payment, you’ll have more control and prediction over your budget.
• Easier qualifying – with lower payments, it’s possible to qualify for a larger loan amount so you can get the home you want.
• More breathing room – with a lower house payment, you’ll have money for other things like private schools, travel, or investing.

When is a fixed rate mortgage a good idea?

When rates are low, these loans are outstanding.

When is a fixed rate mortgage a bad idea?

On the flip side, when rates are high — you might want to get a lower adjustable rate, especially if you’re not staying in the home for the term of a fixed rate loan.

Why Homestead?

Homestead is a top lender of fixed rate mortgage loans for purchasing and refinancing. Our rates are some of the lowest in the states we serve. Our loan advisors provide excellent service, as you can tell from our reviews. Plus, we close fast!