Fixed Rate Loans
The interest rate on a fixed-rate mortgage never changes throughout the life of the loan.You pay the same principal and interest payment each month until the loan is fully amortized and paid off.
The most common fixed-rate mortgage is the 30-year fixed rate loan. Fixed rates also come with terms of 10, 15, 20 and 25 years. The advantage of a fixed rate mortgage is that it provides permanent long-term rate security. Typically, it’s the best program for you if you don’t plan to move or refinance your mortgage for at least 7-10 years. Otherwise, an adjustable rate mortgage (ARM) may prove to be more advantageous for you.