Fixed-Rate Mortgage

What are Fixed-Rate Mortgages?

A fixed-rate mortgage is a home loan with an interest rate that remains the same throughout the life of the loan. This type of mortgage provides predictable monthly payments, which makes budgeting easier for homeowners. Fixed-rate mortgages are typically available in terms of 15 or 30 years, and they are one of the most popular loan options for buyers looking for long-term stability and consistency in their mortgage payments.

Are Fixed-Rate Mortgages Right for You?

Fixed-rate mortgages are ideal for borrowers who value stability and predictability in their monthly payments. They are perfect for homeowners who plan to stay in their home long-term and want to lock in a consistent interest rate over the life of the loan. If you have a steady income, plan to live in your home for many years, and want to avoid fluctuating rates, a fixed-rate mortgage may be the right choice for you.

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Eligibility Requirements

To qualify for a fixed-rate mortgage, you typically need to meet the following requirements:

Minimum Credit Score

A credit score of at least 620 is generally required, but higher scores may secure better interest rates.

Down Payment

A minimum down payment of 3% to 20% is required, with 20% allowing you to avoid private mortgage insurance (PMI)

Debt-to-Income Ratio

A maximum debt-to-income (DTI) ratio of 43%, though some lenders may allow flexibility with compensating factors.

Stable Employment and Income

Borrowers must have a reliable income and employment history to demonstrate their ability to repay the loan.

Loan Type:

Fixed-rate mortgages are available for primary residences, second homes, and investment properties, with varying terms based on property type.

Fixed-Rate Mortgage

Numbers at a Glance

Here’s a quick overview of key numbers associated with this type of loans

Minimum Credit Score

620

Varies by lender

Down Payment

3% to 20%

Varies by loan type

Maximum DTI Ratio

43%

Varies by lender

Loan Term

15 or 30

Years to payoff the loan

Upfront Mortgage Insurance Premium (UFMIP)

None

Depending on lender requirements

Annual Mortgage Insurance Premium (MIP)

Required

Only if down payment is less than 20%. paid as (PMI)

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We offer a variety of loan programs designed to meet the needs of every homebuyer.

Fixed-Rate Mortgage is perfect for you?

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Benefits of Fixed-Rate Mortgages

Predictable Monthly Payments

Since the interest rate remains the same, you can count on consistent monthly payments, making budgeting easier for the long term.

Protection from Rate Increases

With a fixed-rate mortgage, you’re protected from rising interest rates, ensuring your payments won’t increase over time.

Flexible Loan Terms

Choose from a 15-year or 30-year term based on your financial goals, allowing for faster payoff or lower monthly payments.

No Surprises

Unlike adjustable-rate mortgages, fixed-rate loans provide peace of mind with no unexpected changes in your payment schedule.

Not the Loan You're Looking for?

Check out other loan options

Ideal for borrowers with good credit, conventional loans offer competitive interest rates and flexible terms.

Available to veterans and active-duty service members, VA loans provide excellent terms with no down payment required.

Backed by the Federal Housing Administration, FHA loans are perfect for first-time homebuyers or those with less-than-perfect credit.

Designed for higher-priced homes, jumbo loans offer financing options above conventional loan limits.

ARMs start with a lower fixed interest rate for an initial period, then adjust periodically based on market conditions.

These government-backed loans are tailored for rural and suburban homebuyers, often with zero down payment.

Pay only the interest on your mortgage for a set period, ideal for buyers who expect an increase in income or future refinancing.

Allows homeowners 62+ to access home equity without monthly payments, repaid when the home is sold or vacated.

Flexible loans for borrowers who don’t meet standard lending criteria are ideal for those with irregular income.

Combines purchase and renovation costs into one loan, perfect for buyers looking to fix up a property.

You can always ask for advice from a mortgage loan expert.

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Fixed-Rate Mortgages FAQ's

What is the main advantage of a fixed-rate mortgage?

The biggest advantage is that your interest rate and monthly payments remain the same for the life of the loan, providing long-term stability and predictability.

Are fixed-rate mortgages better than adjustable-rate mortgages (ARMs)?

It depends on your financial situation and how long you plan to stay in your home. Fixed-rate mortgages offer consistency, while ARMs may offer lower initial rates but carry the risk of rate increases over time.

Can I refinance my fixed-rate mortgage?

Yes, refinancing is an option if interest rates drop or if you want to change the term of your loan. Refinancing can help you lower your interest rate or switch from a 30-year to a 15-year term.

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First Finance Lending will guide you with expert advice and personalized service to start your homeownership journey with the perfect loan program.