Fixed Rate Mortgages

Which One Is Right For You?

30-Year Fixed Rate Mortgage

This is the most popular and conventional loan program. Your monthly payment is calculated based on the initial interest rate and never changes for the 30-year life of the loan. The 30-Year Fixed Rate Mortgage is considered the most conservative because there is no risk that changing market conditions will affect your monthly payment.

This loan is probably right for you if you don't plan to move or refinance for at least 10 years and you expect interest rates to increase over this period, or you just feel comfortable knowing that your payment won't change no matter what. This loan may also be right for you if you don't expect your income to increase significantly over the next several years.

20-Year Fixed Rate Mortgage

Like the 30-Year Fixed Rate Mortgage, this program guarantees that your payment never changes over the life of your loan. Since you are committing to pay off your loan over a shorter period, however, your monthly payment will be significantly higher than for a 30-Year mortgage.

This loan may be right for you if you are interested in paying off your loan more quickly. This loan may also be appropriate if you expect to stay in this home in your retirement and you will be retiring in fewer than 30 years and wish to start retirement without mortgage debt.

15-Year Fixed Rate Mortgage

The most aggressive of the Fixed Rate Mortgage options, this loan is paid off in only 15 years, resulting in a much higher monthly payment. This program is for those who can afford the higher monthly payment and are willing to pay more over a shorter period of time with the goal of owning the home without debt as soon as possible.

This loan could be for you if you are very aggressive about owning your home sooner or are close to retirement and wish to remain in your home and start retirement without mortgage debt.