Fixed Rate Mortgages
Fixed-Rate Mortgages are the most popular type of mortgage. They offer an interest rate that will remain the same for as long as you have your loan. Stretching out your repayment term means your monthly mortgage payment will be less than it would be with a comparable shorter-term mortgage.
A fixed-rate conventional loan is made by a commercial lender for 30 years. Monthly payments (excluding taxes) remain unchanged for the life of the loan. Most lenders allow mortgages with as little as 5% down, but require private mortgage insurance for loans with less than 20% down.
Key Features
- This mortgage can require a low down payment, sometimes only 3 or 5 percent.
- Payments are stable -- your monthly mortgage payment will not increase.
- The 30-year fixed-rate mortgage provides maximum interest deduction for tax savings.
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