What is a Fixed Rate Mortgage

The Loan Store Online
The Loan Store Online

Mortgage FAQ

Fixed Rate Mortgages: Payments remain the same for the life of the loan
Types
• 15-year & 30-year
Advantages:
• Predictable
• Housing cost remains unaffected by interest rate changes and inflation Adjustable Rate Mortgages (ARMS): Payments increase or decrease on a regular schedule with changes in interest rates; increases subject to limits

What are the advantages of 15 AND 30-year loan terms?

15-year:
• Loan is usually made at a lower interest rate.
• Equity is built faster because early payments pay more principal.
30-Year:
• In the first 23 years of the loan, more interest is paid off than principal, meaning larger tax deductions.
• As inflation and costs of living increase, mortgage payments become a smaller part of overall expenses.

What are the advantages of 15 AND 30-year loan terms?

15-year:
• Loan is usually made at a lower interest rate.
• Equity is built faster because early payments pay more principal.
30-Year:
• In the first 23 years of the loan, more interest is paid off than principal, meaning larger tax deductions.
• As inflation and costs of living increase, mortgage payments become a smaller part of overall expenses.