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Fixed Rate Home Loan

Fixed Rate Home Loan

Home loans offered at fixed rate of interest ensures that the borrower only has to pay fixed equal installments, over the life of the loan until the loan is fully paid off. Typically fixed rate loans are offered for 10, 15, 20, 25 or 30 years although lenders nowadays have started offering from 8 to 30 years. Market fluctuations in interest rates do not affect fixed rate home loans and the rate remains the same even if current rates keep going up. While monthly payments remain the same over the life of the loan, most of the payment is applied towards interest in the initial stages of loan.Conversely, most of the payment is applied towards principal, towards the latter stages of loan. This break down can be seen in an amortization schedule which the loan officer provides at the time of getting a lon.

Benefits of taking Fixed Rate Home Loans:

  • The rate is the same over the life of the loan. It is easy to understand and beneficial for first time home buyers who need the stability of a fixed payment.
  • A fixed-rate home loan assists in long-term planning and budgeting.
  • It ensures financial security since customers need not expect any changes due to future risks.

If you are thinking about obtaining Fixed Rate Home Loans or have additional questions about what loan products you may qualify for, you can reach us here, by phone at (805) 371-0431, or by email at ratelock@paylessloansource.com

Disclaimer : Rates are subject to change. Restrictions apply.