Conforming Loans

Thirty-Year Fixed Rate Mortgage

Fixed rate mortgages are the most common and popular loans available because they never change.  We offer our borrowers the choice of 30, 20, and 15-year fixed-rate mortgages. These loan programs have the same interest rate for the life of the loan and monthly payments (principal and interest) that never change. If you escrow your property taxes and insurance (include them monthly in your payment), those expenses can change, which will affect your monthly payments. A fixed-rate mortgage may be a good choice if you plan to stay in your home for a long time or if you feel more comfortable knowing your payment cannot change. Why consider a Fixed Rate Loan? If you plan to keep your home for a long time and you would like to minimize your monthly payment, a 30-year fixed-rate loan might be your best option.  Or, if your goal is to reduce the total interest you pay over the life of the loan, and you can afford a slightly higher monthly payment, lower terms such as 15 years can reduce interest costs significantly.

Advantages of a Fixed Rate Loan are:

  • Monthly payments are fixed over the life of the loan
  • Can require a low down payment, sometimes only 3 or 5 percent
  • Interest rate does not change
  • Protected if rates go up
  • Can refinance if rates go down
  • Regular payments with no surprises

Disadvantages of a Fixed Rate Loan are:

  • Higher mortgage rate
  • Higher mortgage payments
  • Rate does not drop if rates improve
  • If you prepay your mortgage, you can’t get that money back out without refinancing.

The traditional 30-year fixed-rate mortgage has a constant interest rate and monthly payments that never change. This may be a good choice if you plan to stay in your home for seven years or longer. If you plan to move within seven years, then adjustable-rate loans are usually cheaper. As a rule of thumb, it may be harder to qualify for fixed-rate loans than for adjustable rate loans. When interest rates are low, fixed-rate loans are generally not that much more expensive than adjustable-rate mortgages and may be a better deal in the long run, because you can lock in the rate for the life of your loan.


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Twenty Year / Fifteen-Year Fixed Rate Mortgage

This loan is fully amortized over a 20 or 15-year period and features constant monthly payments. It offers all the advantages of the 30-year loan, plus a lower interest rate—and you’ll own your home twice as fast. The disadvantage is that, with a 20 or 15-year loan, you commit to a higher monthly payment. Many borrowers opt for a 30-year fixed-rate loan and voluntarily make larger payments that will pay off their loan in 15 years. This approach is often safer than committing to a higher monthly payment, since the difference in interest rates, usually, isn’t that great.


Call Derek today to get your personalized rate quote for a fixed-rate mortgage.