Fixed rate loans are among our most popular products. You’ll have more than enough options to choose from if you’d like your interest rate to stay the same throughout the life of your loan. As residential mortgage experts, we have access to an incredible array of fixed loan programs – from FHA-backed mortgages to jumbo loans and construction perm deals. They offer plenty of benefits, but depending upon your situation, fixed rate may not be the best choice.
The most common fixed rate loans stretch repayments over 15 or 30 years. Each has its benefits. For instance, 30-year loans offer lower monthly payments, while 15-year loans reduce the interest you pay over the life of your loan. The interest rate will be slightly lower with a 15-year mortgage as well, and you will build equity in your home and have it paid off faster.
Most buyers select a 30-year loan simply because it allows them to buy a more expensive house while keeping their monthly payments low. However, Midland Mortgage Corporation also has access to 20-year term fixed rate loans, giving you improved buying power, faster equity building, and lower interest costs.
Because your interest rate is guaranteed to stay the same throughout the life of your loan, your monthly housing payment should stay roughly the same as well. Changes in local taxes, insurance costs, and HOA fees may make an impact, but you’ll never be surprised by a hike in your interest rates. In general, interest rates for a fixed rate loan are slightly higher than adjustable loan products on the market, but the sense of security that accompanies fixed rate mortgages is worth it for many home buyers.A fixed-rate mortgage may be an ideal option if you: