With a fixed rate mortgage, a loan's note rate remains constant throughout the life of the mortgage. This consistency gives borrowers peace of mind knowing that the principal and interest portion of their mortgage payment will not change over time.
While the total principal and interest payment does not vary, the amount applied to each portion will change over time. During the beginning of a loan, the majority of one's payment will go to covering interest and a small portion will be used to reduce the loan's principal balance. Over time, the amount that goes toward principal increases and the amount allocated to interest goes down. With most fixed rate mortgages, borrowers can make additional principal reduction payments without penalty which allows them to pay off their loans faster. Make sure to ask your mortgage professional if there are any prepayment penalties associated with their fixed rate products.
Why Consider a Fixed Rate Mortgage?
Rate is fixed through the term of the loan.
Monthly principal and interest payment does not change which can simplify the budgeting process.
In low rate environment, fixed interest rates are often in line with or better than the introductory rates found with adjustable rate products.
Types of Fixed Rate Home Loans We Offer
30 Year: Easily the most popular home financing product in the marketplace. Allows consumers the ability to stretch out their repayment term to 360 months thus keeping monthly payments lower than other fixed rate financing options.
20 Year: 240 month repayment term. Popular option for people looking to refinance who do not want to move back into a 30 year mortgage. Can be a good fit for people who are interested in a 15 year mortgage but need a little more flexibility with their monthly payments.
15 Year: Very popular solution for borrowers who are looking to pay off their mortgages quickly and who want the security of a fixed rate product.
10 Year: Shortest repayment period we offer. Borrowers should be a in strong financial position and have employment security before choosing a 10 year term.
Low Rates & Closing Costs from Smart Mortgage Centers
At Smart Mortgage Centers, we offer a great selection of fixed rate financing solutions including conventional conforming loans, FHA mortgages, VA loans, USDA rural housing loans, 203K rehab loans, and jumbo mortgage products. Our rates and closing costs are some of the most competitive in the mortgage industry. Give us a call today at 888-416-0920 for a free consultation and found out why thousands of borrowers from Illinois have chosen us for their fixed rate home financing needs.