• Fixed Rate

  • A fixed rate mortgage loan is the most common type of mortgage that my clients obtain for their home purchase or refinance.

    The phrase "fixed" means that the interest rate is guaranteed at that percentage for the life of the loan term. 

    Most loans are for 10, 15, 20, 25, and 30 year terms.

    A fixed rate mortgage loan is ideal if you plan on living in the home for a number of years. 

    There is typically a tradeoff when it comes to choosing a mortgage between risk and reward, or between an adjustable-rate mortgage and a fixed-rate mortgage. Depending on market conditions (the shape of the yield curve), an adjustable-rate mortgage might have a large initial payment advantage over a fixed-rate mortgage. However, if such a scenario exists, there is a probability that the payments on the adjustable-rate mortgage will rise over time.

    Mortgage borrowers need to understand and measure risks when deciding between an adjustable-rate and fixed-rate mortgage.