Fixed Rate Mortgages

A Fixed Rate mortgage is a great choice when you plan to own a home for more than 5 years. A fixed rate mortgage means that your interest rate and your monthly payment is the same every month for the life of the loan.

If interest rates are low and you plan on owning the home for a long period of time, then a fixed rate mortgage is for you. Even if you think you may own the home for less than 5 years, a fixed rate mortgage may still be the best choice. If your personal circumstances force you to stay in your home longer than you expected, at least you know that your monthly payments will not change when you have a fixed rate loan.

During the 2006-2009 real estate downturn, many homeowners were caught by adjustable rate mortgage increases when they found they couldn’t refinance or sell the home because the home value had decreased to less than the value of the loan.