Fixed Rate Mortgage

>> Fixed Rate Mortgage

Not ready for a sizable down payment? There are options that can make you a home owner with a low down payment.

Benefits of Lower Down Payments

The 15-year mortgage

You can purchase a single-family home or condominium with as little as 3.5% down payment using an FHA loan, but there is a price for lower down payments on conforming loans: mortgage insurance (often called PMI, private mortgage insurance).

Mortgage insurance is required when the conforming loan amount is MORE than 80% of the purchase price (practical translation: down payment is less than 20%). Also, the lower the down payment, the higher the premium ratio charged.

The 30-year mortgage

You will pay more in interest. Longer mortgage means more
interest charged. This is how banks and other lenders make their money. They
loan you, the borrower, money and collect their interest over the 15 or 30
years it takes you to pay them back.

   

Your monthly payment will likely be lower. Because you are
spreading out your payments over a longer period of time, they will almost
always be lower with a 30-year mortgage. If your monthly budget is tight, this
may be a better way to go.

How it Works

  • Monthly payments are based on interest rate, principal loan
    amount, and amortized interest over 30 years. With a Fixed Rate Mortgage, your interest rate will never change, even if market rates increase!

  • Your payment will not change throughout the life of the loan.

  • Your actual payment will vary based on your situation and the current interest rates when you apply.

  • Pay your mortgage off at any time without pre-payment penalties.

Have questions? Give us a call! One of our mortgage specialists would be happy to answer all of your questions.

What are your goals? Everyone is unique, request your personalized rates and fees.