Fixed-Rate Mortgages

MCM Mortgage
Nov 10
2 min read

a model of a house made out of $100 U.S. bills

What Is an FRM (Fixed-Rate Mortgage)?

Plan on living in your home for a long time? Starting a family and need a new home?

If the house you're buying is one you plan on calling home for a while, a fixed-rate mortgage may be the ideal loan for you.

Fixed-Rate Mortgages provide you with a mortgage interest rate that stays the same. From the moment you close on your mortgage to the day you pay you finish paying off your loan, your monthly principal and interest payment will stay consistent and manageable, alleviating any surprises. Fixed-rate mortgages are ideal if you want to settle in with a rate that settles right along with you.

Types of Fixed-Rate Mortgages

There are several types of fixed-rate mortgages for purchase and refinance. Some popular ones are:

These loans are available in a variety of term lengths, generally ranging from 10 to 30 years.

Fixed-rate mortgages feature a stable, unchanging interest rate that doesn't rise or drop with market rates. If market rates fall below your fixed interest rate, you can apply to refinance your mortgage to save on your monthly payments. No need to have any fear on "missing out" on a lower interest rate.

Eligibility

Eligibility standards will vary depending on the type of fixed-rate mortgage that's right for you, but you must have sufficient income and credit history to qualify.

Fixed-Rate Mortgage Pros and Cons

To help you decide if a fixed-rate mortgage is right for you, here are some benefits and drawbacks.

Fixed-Rate Mortgage Pros	Fixed-Rate Mortgage Cons
Interest rates are set and won't change	Your initial interest rate may be higher than an adjustable-rate mortgage
Your monthly principal and interest payment won't change	Your mortgage payments may be higher than initial ARM payments
You'll be protected from rate increases	Your interest rate won't automatically lower if market rates drop below your fixed interest rate
You may be able to refinance if market rates decrease