A mortgage payment that never changes

Common types of fixed rate mortgages

The 15-year mortgage

You will pay less in interest. If you borrow $100,000 to purchase a home at a 4% interest rate, paying over a longer period of time will mean more interest on the money borrowed. So, a 15-year mortgage can significantly cut down on the interest that you pay. Add to that the lower interest rates that are often available for 15-year mortgages and you could have some big savings available.

Your monthly payment will likely be higher. Even with the lower interest rate, you will probably have a slightly higher payment with a 15-year mortgage. This happens because you are paying more towards principal from the beginning. But, you will be mortgage-free in half the time, which is no small feat.

The 30-year mortgage

You will pay more in interest. Longer mortgage means more interest charged. This is how banks and other lenders make their money. They loan you, the borrower, money and collect their interest over the 15 or 30 years it takes you to pay them back.

Your monthly payment will likely be lower. Because you are spreading out your payments over a longer period of time, they will almost always be lower with a 30-year mortgage. If your monthly budget is tight, this may be a better way to go.

How it Works

• Monthly payments are based on interest rate, principal loan amount, and amortized interest over 30 years. With a Fixed Rate Mortgage, your interest rate will never change, even if market rates increase!
• Your payment will not change throughout the life of the loan.
• Your actual payment will vary based on your situation and the current interest rates when you apply.
• Pay your mortgage off at any time without pre-payment penalties.

Have questions? Give us a call! One of our mortgage specialists would be happy to answer all of your questions.

Compare Loan Options

Not sure this is the right fit? Compare it with a few other loan programs that might work better for your situation:

• FHA loans for lower down payment options
• Jumbo loans if you’re borrowing above the conforming limit
• Low down payment purchase options for other ways to reduce your upfront cost
• Or click here to view all options

Frequently Asked Questions

What’s the difference between a 15-year and a 30-year fixed-rate mortgage? Both lock in the same interest rate for the life of the loan, but the term changes the trade-off. A 15-year mortgage usually comes with a lower rate and far less interest paid overall, but a higher monthly payment. A 30-year mortgage spreads payments out further, so the monthly payment is lower, but you’ll pay more in total interest over time.

Will my interest rate ever change with a fixed-rate mortgage? No. That’s the defining feature: once you lock in your rate, it stays the same for the entire life of the loan, whether market rates go up or down. Your total payment can still shift slightly if your property taxes or insurance escrow changes, but the rate itself never does.

Is a fixed-rate mortgage better than an adjustable-rate mortgage (ARM)? It depends on your plans. A fixed-rate mortgage is usually the better fit if you plan to stay in the home long-term and want a payment you can count on. An ARM can offer a lower initial rate, which may make sense if you plan to move or refinance within the first several years. Talk to a loan officer about your timeline before deciding.

Are there penalties for paying off my fixed-rate mortgage early? No. You can pay off your fixed-rate mortgage ahead of schedule, whether through extra payments or a full payoff, without a prepayment penalty.

Can I refinance out of a fixed-rate mortgage later? Yes. Plenty of homeowners refinance a fixed-rate mortgage down the road, whether to shorten the term, switch from a 30-year to a 15-year, or take advantage of a lower rate environment. There’s no rule against refinancing a fixed-rate loan.

What credit score or down payment do I need to qualify? It depends on the loan program. Conventional fixed-rate loans typically look for a credit score of 620 or higher, though we also offer fixed-rate options through FHA and other programs with more flexible requirements and lower down payments. We’ll walk through what you qualify for based on your situation.