fixed rate mortgage loans

Fixed Rate Mortgages

Fixed rate mortgages (FRM) remain the same throughout the length of the loan and the interest rate and monthly payment never change. Fixed rate mortgages are available for 30, 25, 20, 15, and ten years. Generally, with shorter length loans, the interest rate is lower. On a longer term loan your interest rate is higher but your monthly payment is lower compared to a shorter length loan.

The advantages of a short term loans is being able to pay your loan off quicker, in effect reducing the amount of total interests paid through out the length of your loan. A short term loan is good for people who can afford a higher monthly payment and want to pay the loan in a shorter amount of time. A long term loan with more suitable for persons who have a limited budget and need their monthly house payment to be the least amount possible.

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Conventional Loans: These loans are not insured or guaranteed by the federal government.

Government loans: These types of loans consist of VA (for veterans) and FHA (first time home buyer, troubled credit, little or no money down) Loans

Fixed rate mortgage Loan (FRM): Interest rate and monthly mortgage payments remain the same for the duration of the loan.

Adjustable rate mortgages (ARM): Interest rate and monthly mortgage payments fluctuate over the period of the loan.

Balloon Loans: A short-term fixed-rate loan with low payments for a set number of years and one large final balloon payment of the remainder of the principal.