101 Home Loans

Fixed Rate Mortgage

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Fixed Rate Mortgage Loans From 101 Home Loans.

A fixed rate mortgage gives you the peace of mind that comes with knowing exactly what you will pay every month over the life of your loan. Once you lock in your interest rate, it never varies, protecting you from the fluctuations of the housing loan market. If rates happen to drop below your current loan rate, you have the option of refinancing your home to reduce your monthly payments.


When you opt for a 30 year fixed rate mortgage, your payments are stable and affordable. This is the traditional loan form, and it is still a popular option, especially among first-time borrowers. Additionally, without an adjustable rate, loan terms are easy to understand. If you don’t mind making higher monthly payments, a 15 year fixed rate mortgage lets you pay off your loan in half the time. Not only is the road to full homeownership shorter, but you also get the benefit of lower interest rates. Furthermore, you pay out less in interest overall because you have fewer years on your loan.

Pros and Cons of Fixed Rate Mortgages.

Understanding the pros and cons of a fixed rate mortgage loan and its financial impact will help you determine if this type of loan is right for you.

Pros

You'll be protected from rate increases.

Interest rates are set and won't change.

You'll be protected from rate increases.

You may be able to refinance if market rates decrease.

Cons

Your initial interest rate may be higher than an ARM rate.

Your interest rate won't automatically lower if your market rates decrease.

Your mortgage payments may be higher than initial ARM payments.

Fixed Rate Mortgages Eligibly Requirements.

If a fixed rate mortgage is an attractive option for you, you will need to go through the process of procuring the loan. Getting preapproved for home loans makes it easier to close on a house once you decide on one. You also know what you can afford.


To get a 30 or 15 year mortgage with a fixed rate, you need to have a good credit score. Generally, a score of at least 670 qualifies, and anything lower than 620 is less likely to meet the qualifications for a traditional loan. Additionally, you should have a debt-to-income ratio of no more than 43%. You’ll need to provide income verification, proof of homeowner’s insurance and asset information.

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Is a Fixed Rate Mortgage Loan Right For You?

If you plan to stay in your home for a long time, fixed rate home loans may be a good option for you. These loans aren’t just suitable for those who are purchasing a house. Many homeowners choose to refinance their homes with a fixed interest rate. This may be the right choice for someone who has built up their credit and wants a more affordable monthly payment with lower interest rates.


The predictability and stability of these loans make it easy to budget. Knowing your monthly mortgage allows you to plan well into the future. Whether you are just beginning your career or nearing retirement, a fixed rate mortgage can help you save money for the future.

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