Fixed Rate Mortgages

Houses on Pennies

 

What is a Fixed Rate Mortgage?

Fixed rate mortgages are often considered the “traditional” mortgage loan.  The interest rate does not change during the entire duration of the loan.

The homeowner’s monthly payments will remain the same amount throughout the duration of the loan term despite any fluctuation in market rates.  Typical fixed rate home loans terms can be 10, 15, 20 or 30 years.

 

The Benefits of a Fixed Rate Mortgage:

  • Knowing the rate and monthly payment will not change over time.
  • Pairing a fixed rate mortgages with the right term loan will guarantee a steady mortgage payment making it easier to budget.
  • The fixed rate mortgage is ideal for any homeowner planning to stay in their home for more than 10 years.

A Tip for Paying a Fixed Rate Mortgage Quicker:  After selecting a comfortable fixed rate mortgage term, pay a little extra each month towards the principal to decrease the amount of interest paid towards the loan.

 

Ready to Invest in Your Dream Home?  American Eagle Credit Union offers a variety of home loan options for any family.  Learn more about the home buying process on our Home Loan Basics page today or talk to one of our knowledgeable mortgage loan officers


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