Conventional Fixed Rate Mortgage
Just like it sounds: a conventional fixed rate mortgage is a home loan that has set monthly principal and interest payments (“monthly payment”) that ensure the loan is paid off by the end of the term, providing you make every monthly payment as scheduled. Longer terms provide lower monthly payments by stretching out the repayment of the loan over a longer period. A shorter term generally offers a lower interest rate, and higher monthly payments because it is paid off sooner. Regardless of the initial term you choose, all conventional fixed rate mortgages can be paid off more quickly by paying more than the required monthly payment.
Fixed rate mortgage features:
Low down payment options
No Mortgage Insurance with a Loan-to-Value of 80% or less
Purchase requires a 20% + down payment
Refinance is based on the appraised value
Consistent monthly payments for lifetime of the loan
Pays off the loan completely when every monthly payment is made as scheduled
Shorter terms require a higher monthly payment, but pay off faster
Flexibility in paying off mortgage
Add to your monthly payment or make extra payments to pay off the loan quicker
More house for the mortgage
Lower payments mean you could afford a more expensive home
Loan options up to $3 million for non-conforming loans
What’s the difference between a fixed rate mortgage and an adjustable rate mortgage (ARM)?
The interest rate and monthly payment on fixed rate loans remain the same over the entire term. With an adjustable rate mortgage, the interest rate, and monthly payments begin with an introductory fixed rate period, after which the interest rate, and monthly payments periodically adjust up or down based on current market conditions. Many ARMs will start with a lower interest rate than fixed rate mortgages, then adjust once the introductory period is over. The introductory period could be a few months or a few years. For example, a 5/1 ARM means the initial interest rate and monthly payments are fixed for the initial 5-year period, after which they may adjust up or down every year until the end of the term.
Speak with a loan officer or visit one of our local branches to learn more about the difference between a fixed rate and ARM before deciding which loan option is right for you.
Is a fixed rate mortgage right for you?
If you’re ready to buy a home and want predictability and a steady monthly payment for the entire term, look no further than a fixed rate mortgage. A fixed mortgage is one of the most common mortgage types for homebuyers because it offers multiple loan terms enabling either lower monthly payments, or paying off the balance sooner. Here are other scenarios to help you determine if a fixed rate mortgage is the right option for you:
You plan on living in the home for more than 5 years for shorter term loans, or 10 years for longer terms.
You have a steady job and regular income
You want consistent monthly mortgage payments
You need the flexibility to qualify for a larger home because a lower monthly payment allows for a larger initial loan amount
You want more flexibility in your household budget
Consistent monthly payments allow more flexibility when managing other household expenses
Why choose SecurityNational Mortgage for your fixed rate mortgage?
We’re experts with deep experience in underwriting, processing, and closing on fixed rate mortgages. Let our professionals guide you through the experience!
This is not a commitment to make a loan, nor should it be construed as lending advice. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet LTV requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines, and are subject to change without notice based on applicant’s eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over life of loan. Reduction in payments may reflect longer loan term. Terms of the loan may be subject to payment of points and fees by the applicant. SecurityNational Mortgage Company is an Equal Housing Lender NMLS# 3116.
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