Make fixed payments for the life of the loan
If you’re looking for the predictability of a fixed payment, look no further than a fixed-rate mortgage.
This mortgage type offers a set interest rate, resulting in a fixed payment amount that will not change over the life of the loan. It’s particularly popular with first-time home buyers, and anyone who finds it easier to budget and plan around the predictability of a fixed payment. Loan lengths vary, but the most common term is 30 years.
Ideally Suited for
- People seeking the predictability of a fixed payment
- Home buyers planning to keep their home for 10 years or more. Many adjustable rate mortgages allow for rate fluctuations after a specific time period, such as 5 or 10 years.
- Those with adequate credit. If you have lower credit scores, you may find an adjustable rate mortgage offers a lower initial monthly payment than a fixed rate mortgage.