Fixed Rate - This standard form of a mortgage has two basic characteristics that do not change throughout the liof the loan: the interest rate and the repayment term. In addition to the principal and interest the lender often collects monthly on the amount needed to pay annual taxes and insurance. This amount can sometimes be known as impound fees or escrow funds, this amount can be determined by taking the cost over the year dived by 12. Although, the principal plus interest payment remains constant over the life of the loan, the amount needed to pay taxes and insurance may vary, resulting in the change in the total monthly payment. The accured interest due on the loan is always paid first, with the balance of the payment allocated to principal, taxes and insurance accordingly. The result of this standard payment format is that the borrower begins to build equity with the first monthly payment.

And remember conventional fixed rates change twice a day. So be sure to consult with your loan officer to determine the best option for you.

Fixed rate mortgages (FRM) are stable loans because the interest rate is the same for the life of the loan. If rates rise you are protected from paying a higher rate on your loan. Also, if rates decrease, you can refinance to a new lower fixed rate mortgage.

Usually, the term fixed rate also means that the payment is fixed for the life of the loan and pays it off over the term.

Fixed Rate mortgages have come in a variety of lengths and amortization periods for quite some time. A more recent development is the availability of fixed rate mortgages with minimum payment options, allowing homeowners to make lower payments in exchange for home equity on a month to month basis. Popularized first by adjustable rate mortgages known as option ARMs, fixed rate loans with these "cash flow" payment options are an interesting alternative for borrowers who like the security not only of a fixed rate, but also the safety of a lower payment option for months when cash flow might be allocated more usefully elsewhere in their budget.

Considering the fact that the average American homeowner sells or refinances their home every 5 years, that is a major reason why a fixed rate mrotgage is not always the best program for everyone. An adjustable rate mortgage will usually offer a lower rate and a lower payment.

Although your monthly mortgage payment will always remain the same, the principal payment will go up, and the interest payment will go down with time. The longer you remain in the mortgage, the faster you build equity.

The reason your principal and interest change each month is that you are paying interest on the current amount of the loan. Therefore, since the amount of the loan goes down with each payment, the amount of the interest payment also goes down. Since your total principal and interest payment stays the same, your principal payment goes up.

Also, if you pay more on your mortgage each month than you are required, you will build equity faster, in two ways. First, the added payment goes directly to your equity. Second, you decrease your loan amount, which means you pay less in interest, and more in principal for every month, for the rest of the life of your mortgage.

Fixed Rate Mortgages (FRM) are suitable for homeowners who intent to keep the property for a long time, preferably for the life of the loan. FRM are also good for homeowners who are uneasy about the uncertainty in interest rate trends and the potential increase in future payments that are associated with Adjustable Rate Mortgages (ARM). To accommadate homeowners who do not intent to keep the home for more than 10 years and are uncomfortable with the potential risk of an ARM, most banks offer Hybrid Loans. Hybrid Loans offer a Fixed Rate period for the initial one, three, five, seven, or ten years, followed by an Adjustable Rate for the remainder of the loan term.

One of the misconceptions about mortgage programs the average borrower has is they truly believe fixed rate mortgages are always best. When you understand the mortgage business you begin to see why this is not always the case. When you plan on refinancing your house in just a few years or selling the home in this time frame you may want to consider one of the Hybrids to keep your payments lower. This can save you money over time. Ask your mortgage broker to show you the difference and compare.

ARM loans generally have a lower interest rate than fixed rate loans, and you therefore have a lower payment. However, there are some cases where the interest rate may be the same or even slightly lower on a fixed rate loan that on an ARM. In these cases, it is always better to choose the fixed rate mortgage.

You are probably familiar with a fixed rate mortgage. Your parents more than likely had one, as did their parents before them. The major advantage of fixed rate mortgages is that they present predictable housing costs for the life of the loan

For up to date quotes on today's fixed rates, contact Mortgage Info Guide at for a free rate quote.

This being the most common type of mortgage, consists of one fixed interest rate for the complete term of the mortgage, so you always pay the same monthly payments for the life of the loan. This offers consistency, an advantage for borrowers on fixed or limited incomes.

A 30 Year Loan may be an Adjustable Rate Mortgage or a Fixed Rate Mortgage since both mortgage types can be amortized over 30 years. To ensure you truly are in a fixed rate mortgage, review the Truth In Lending, this document should show no adjustment in payment.

A Fixed rate does offer the most in safety and lack of risk of any loan program. That safety comes with a price, however. The payment on a 30 year fixed mortgage will be the highest payment of any program that you select.

In addition to a 30 year fixed loan, you can get a 15 year fixed rate mortgage. Most people believe that, since the mortgage is paid off twice as fast, the payment must be twice as much. This is simply not the case.

15 year fixed mortgages usually have a lower interest rate than 30 year fixed. Since most of your monthly payment is interest, it only takes a small increase in your principle payment to pay off your loan in 15 years. Your total monthly payment can be as low as 15% more than on a 30 year fixed mortgage.

For example, if you had a 30 year mortgage where you are paying $1,000 per month, a 15 year mortgage may cost only $1,150 per month. The exact difference in payment will depend on your own situation. Contact a trusted mortgage professional if you are interested in seeing what the payment difference is for you.

Todays fixed rate mortgages are available in terms of 15,30,40 and 50 years. By going with a longer term you will be able to lower your payment, afford more house and you will be able to pay off the mortgage with the security of a fixed rate.

Fixed Rate Mortgage Rates - The 30 year fixed rate mortgage is the most popular fixed rate mortgage. 30 year fixed rate mortgages are now low based on history. 30 year fixed rates were 6.2% in early 2007, 8.2% in 2000 and 9.2% in 1995.

Not all 30 year fixed mortgages are the same. There are interest only 30 year fixed mortgages and standard principal and interest 30 year fixed rate mortgages. The interest rates will be different between the two programs as well but the interest only will have a lower payment.

Your Fixed rate Mortgage payment amount is independent of the additional costs on a home sometimes handled in escrow, such as property taxes and property insurance.

Many borrowers enjoy the convenience of a 30 year mortgage and occasionally prepay their loan by a few hundred dollars per month. This allows one to prepay the loan, but still only need to make the 30 year fixed payment per month if they so desire.

Fixed Rate Mortgage rates vary dramatically with both term and payment type. Just as 10 and 15 year fixed rate mortgages will have lower rates, 40 and 50 year mortgages will have higher rates than the benchmark 30 year fixed mortgage. The type of amortization also affects the rate. Fully Amortized loans where principal & interest are both paid each month have marginally lower rates than typical Interest Only loans, which in turn have marginally lower fully indexed rates than Fixed Rate Pay Option loans.

Fixed mortgage rates change throughout the day each and every day that the stock market is open. Therefore if you are shopping around for a fixed rate mortgage it is important that you shop around on the same day. Once you have your fixed rate locked in with a mortgage company it will remain that same rate until the end of your mortgage loan, unless there is a problem getting your mortgage loan closed before the rate lock expires. As long as you close and fund before the end of the rate lock expiration you will never have to worry about that fixed rate mortgage rate ever changing on you.

The daily movements of fixed rate mortgages are due to the trading of mortgage backed securities to investors who determine what credit risk level they choose to purchase.

A 15 or 20 year fixed rate will typically be a bit lower than a 30-year rate. Of course, the monthly payment will be higher as you will be paying the loan back in a considerably shorter time period.

Fixed Rate Mortgages - This is the most common type of mortgage because your interest rate does not change over the life of the loan. This provides stability and security for the borrower.

Most lenders offer fixed rate mortgages on terms of 10, 15, 20, 25, and 30 years. Generally as your term goes down, so will your interest rate. For example if you were to look at the difference between a 30 year mortgage and a 20 year mortgage you would probably be looking at a difference of .125% to .25% between the two rates, with the 20 year loan offering the lower rate.

Fixed Rate Mortgages are now available which combine the security of a Fixed Rate for up to 30 years with flexible payment options which were until recently only available on more risky Option ARM programs.

If you are considering refinancing your adjustable rate mortgage to convert to a fixed rate mortgage, please review some of the most popular fixed rate loan options, and evaluate their pros and cons.

When deciding between a 15,20,30, and even 40 Year Fixed Mortgage, it is important to consider what your savings and cash flow requirements are. Many borrowers can benefit by opting for a longer term mortgage with a lower monthly payment, while putting the savings into an investment account.

A fixed rate mortgage 'locks' you into an interest rate for the entire life of the mortgage. The 30-year and 15-year are the most common fixed rate mortgages are the most common but other terms are available. Generally, a fixed rate mortgage is a good choice when interest rates are low, as the rates rise an adjustable rate mortgage may be a better choice.

While fixed rate mortgages are generally the ideal choice for most borrowers, it may not be the best choice for you. Let your mortgage consultant know about your short and long term plans and discuss what other alternatives may be more financially beneficial to you.

With he average home owner refinancing every 5 years the fixed rate mortgage loan is not always the best choice for home owners. If you will be relocating or know that you will need to refinance in the coming years then an ARM may be a better option for you. The ARM will have a lower rate then the fixed rate and are available in 2,3,5,7 and 10 year fixed periods.

Fixed Rate Loan - Fixed Rate Loans come in a few different shapes and sizes. If you are considering refinancing your adjustable rate mortgage to convert to a fixed rate loan, please review some of the most popular fixed rate loan options, and evaluate their pros and cons.

30 Year Fixed Rate Loan
25 Year Fixed Rate Loan
20 Year Fixed Rate Loan
15 Year Fixed Rate Loan
30 Year Bi-Weekly Fixed Rate Loan
30 Year Fixed Rate Cash Flow Option Loan
Adjustable Rate Mortgages with Fixed Rate Loan Periods
Convertible Fixed Rate Loan

Fixed rate loans offer borrowers stability without the anxiety of payment increases in the future.

A fixed rate loan can be a prudent choice because you know that your interest rate will not change over the life of the loan. A fixed rate loan provides security and protection from an increase in interest rates.

There are numerous choices available when shopping for a fixed rate mortgage loan product. Your first step should be to contact a mortgage broker to discuss your options and goals. No two borrowers are alike and its your mortgage brokers job to find the loan program that best suits your unique situation.

Fixed rate mortgages might be right for you if:

Want the security of a fixed principal and interest payment.
Think that interest rates will go up.
Are on a fixed or limited budget.

Because Fixed rates are so low in todays market, unless one is getting an option ARM, Long Term Fixed rate mortgages remain the best option for most borrowers.

30 Year Fixed Rate Loan
Description: The most popular mortgage in America. Fixed Rate and Payment for 30 years designed to pay off the house by the end of the loan by including both Principal & Interest in the monthly payments.

Pros of a 30 Year Fixed Rate Loan:
30 Year Fixed Rate Loans are utterly predictable, there are no surprises. Due to the way 30 year fixed rate loan products are amortized, the payments over the first half of the loan are primarily interest and therefore tax deductible in most cases. A variety of government sponsored programs are available to make this particular variety of fixed rate loan more accessible to homeowners.

Cons of a 30 Year Fixed Rate Loan:
Payments on a 30 year fixed rate loan are comparatively higher than many adjustable rate loans, although the gap between 30 year fixed rate loans and ARM loans is narrowing. 30 year fixed rate loans

30 Year Fixed Rate Loan with Cash Flow Option
Description: A newcomer, the 30 year fixed rate loan with cash flow option offers a fixed rate for 30 years with 4 payment options ranging from a minimum payment which pays less than the required amount of interest to a 15 year fixed rate payment which allows payment of additional principal. Designed to pay off the home in 30 years by recasting in 10 years to a full principal and interest mortgage.

Pros of a 30 year fixed rate loan with cash flow option:
Very low minimum payment option. 30 year fixed rate loan programs with cash flow options offer the flexibility of an option arm with the security of a long term fixed rate, allowing borrowers who can capitalize on the added cash flow of making a minimum payment to defer interest at will for the first 10 years, effectively trading home equity for cash on an elective, optional basis as needed. Like a 30 year fixed rate loan with a built in home equity line of credit. A popular option amongst borrowers who wish to minimize mortgage payments for the first several years in their property, are interested in maximizing free cash flow over paying off their mortgage over the near term, and have substantial equity in their home. Allows borrowers with substantial business or passive income streams to maximize the amount of taxable gross income attributable to long term capital gains tax by minimizing monthly debt service requirements, effectively reducing income tax liabilities. Popular and appropriate for the self employed, investors, high net worth individuals, and wage earners with substantial periodic or bonus income. Very low minimum payment option provides borrowers with a much smaller monthly payment to come up with in the event of job loss, illness or disability, providing a fallback strategy and hedge against these most common factors leading to foreclosure. Fixed Rate for 30 years lends predictability to negative amortization characteristics which is a chief criticism of option ARM mortgages offering the same features. Often the only viable choice for borrowers refinancing out of an option ARM mortgage. Easy to qualify for if there is at least 20% equity in the home (no minimum credit score requirements in many cases), and fixed rates available are often lower than those otherwise available to borrowers with credit scores lower than 700 otherwise.

Cons of a 30 year fixed rate loan with cash flow option:
30 year fixed rate loan programs with cash flow options are only available at present to borrowers with 20% or more equity in their homes. Negative amortization features are considered a plus and a minus, however for borrowers who wish to pay off the mortgage on the home they are currently in, and can afford to make a larger payment today, a 15 year fixed rate loan may be the better choice, especially if you have a credit score over 760. Not recommended for borrowers who can only make the minimum payment, as the loan will convert to a full principal and interest mortgage at 10 years or the second recast, whichever is earlier. A very versatile financial product for special situations, which like a sharp knife can be a powerful and efficient tool in the right hands, but a trip to the emergency room in the wrong ones. If you want to own your home free and clear, can make a larger payment each month, have substantial assets and more than enough free cash flow, select a mortgage with a higher minimum payment to pay off your mortgage more quickly and save interest.

It's never too early to start looking into getting out of that ARM. A mortgage loan professional can help you work out a timeline for refinancing into a fixed rate mortgage, which will help you avoid a potentially (and almost certainly) costly adjustment.

Fixed rate fully amortizing loans have two distinct features. First, the interest rate remains fixed for the life of the loan. Secondly, the payments remain level for the life of the loan and are structured to repay the loan at the end of the loan term. The most common fixed rate loans are 15 year and 30 year mortgages.

In todays market where rates and payments are adjusting to record highs, many borrowers are changing their adjustable rate mortgage over to fixed rate products.

Fixed Rate Mortgage (FRM) - "What is a fixed rate mortgage(FRM)? Should I get one?"

Fixed rate mortgages is a mortgage loan that has a permanent interest rate that will not change for the life of the loan. This is only one type of mortgage and your mortgage professional can help you decide if they mortgage will fit your financial status.

The most common type of mortgage program where your monthly payments for interest and principal never change. Property taxes and homeowners insurance may increase, but generally your monthly payments will be very stable.

Fixed rate mortgages are available for 30 years, 20 years, 15 years and even 10 years. There are also "biweekly" mortgages, which shorten the loan by calling for half the monthly payment every two weeks. (Since there are 52 weeks in a year, you make 26 payments, or 13 "months" worth, every year.)

Fixed rate fully amortizing loans have two distinct features. First, the interest rate remains fixed for the life of the loan. Secondly, the payments remain level for the life of the loan and are structured to repay the loan at the end of the loan term. The most common fixed rate loans are 15 year and 30 year mortgages.

During the early amortization period, a large percentage of the monthly payment is used for paying the interest . As the loan is paid down, more of the monthly payment is applied to principal . A typical 30 year fixed rate mortgage takes 22.5 years of level payments to pay half of the original loan amount.

If a fixed rate mortgage isn't right for you, there are several adjustable rate mortgages available that can work better for some customers in the short term.

One reason that you may choose an adjustable rate mortgage as opposed to a fixed rate mortgage is the length of time you plan on residing in your home. If you know you are planning on staying for a short period of time, it may be wise to take advantage of the lower initial rate.

Fixed rate fully amortizing loans have two distinct features. First, the interest rate remains fixed for the life of the loan. Secondly, the payments remain level for the life of the loan and are structured to repay the loan at the end of the loan term. The most common fixed rate loans are 15 year and 30 year mortgages.

A popular 30 Year Fixed Rate loan is currently one that features an "interest-only" option for the first 10 years. The program allows you to prepay your loan if you like, with no penalty, or pay only interest for the first 10 years. After the first 10 years, your loan becomes fully amortized to be paid off in the remaining 20 years. Consult your mortgage professional to determine if this program is best for you.

Fixed Rate mortgages are commonly believed to have high minimum payments, however there are fixed rate mortgages available with up to 30 years of fixed interest and "Cash Flow" deferred interest payment options which allow for the payment flexibility once associated exclusively with ARM mortgages. In today's market, a fixed rate cash flow option mortgage may have a lower overall rate than many similar ARM adjustable rate loans. To see if you qualify for a 30 year fixed rate mortgage refinance with a cash flow deferred interest option, contact one of our seasoned financial professionals at