This "traditional" type of loan maintains its original interest rate throughout the entire life of the loan. (Any change in monthly loan payments will be due to increases in other charges like insurance or taxes that will naturally occur over time.) Fluctuations in market rates, over the term of your loan, won't have any impact on the amount of interest you pay because that rate is already "fixed."  

Fixed Rate Loan Options

Fixed Rate Mortgage Loans come in 10,15,20, and 30 year terms.  In determining the length of your loan, you may want to consider:

• The amount of your monthly payments.  A 30 year loan will provide you with a lower monthly payment compared to a 20,15, or 10 year loan.
• The total amount of interest you will pay over the course of your loan. For example, the total cost of a 30 year loan is higher than the total cost of a 20,15, or 10 year loan.

A Fixed Rate Mortgage may be a good choice if you:

• Want the security of knowing what the amount of your mortgage payment will always be
• Plan to stay in the home for a longer period of time
• If, in the coming years, you don't expect your income to increase significantly