• Darren Ferlisi
    Mortgage Loan Originator
    NMLS ID# 139611
    Office Phone: (240) 415-5015
    Cell Phone: (301) 448-0749
    Email: dferlisi@ihmcloans.com

  • Fixed Rate

    October 2, 2013
  • What is a fixed rate mortgage loan?

     

    A fixed rate mortgage loan is one of the two most basic conventional mortgage loans (the other one is an adjustable rate loan). This loan is also the most popular loan option people take. Conventional loans often feature a lower interest rate than FHA loans, VA loans, jumbo loans or USDA loans. 

    Conventional Fixed rate loans are great for people who want the predictability of fixed payments. No surprises! You’re protected from rising interest rates for the term of the loan. This means your loan payment won’t change. However, property taxes, homeowner’s insurance premiums and homeowner’s association fees (HOA) can fluctuate. 

    If you’re planning to stay in the home for a long time, a fixed rate loan may be a better option for you over an adjustable rate loan, which is good for people who know they’re going to move within several years or less. One of the major drawbacks of a fixed rate loan is that the interest is often higher than an adjustable rate loan. Adjustable rate loans can rise over time, so it’s best to keep this in mind. 

    These mortgages are usually offered in 30 year terms or 15 year terms. A 30 year loan offers a lower monthly payment, but you pay more interest over the life of the loan. A 15 year loan often offers a lower interest rate, you’ll pay less interest over the life of the loan, but your monthly payments will be much higher. 

    There are many loan options available to you at Integrity Home Mortgage Corporation (IHMC). Let us help you figure out what options you have and what will work best for you.