September 13th, 2018

What Are Fixed Rate Mortgages And How do They Work?

Buying a home can be exciting. The process of finding the right home, making an offer, and eventually moving in is one that nobody forgets. But the financial side of the process can be much more stressful and confusing. Finding the right mortgage loan will be one of the most important steps that you take, but is often more work than homebuyers expect.

With that in mind, the simple fact is that learning more about the loan options can help you buy with more confidence. And for most home buyers, a fixed rate mortgage is likely to be the best mortgage option available. Luckily, it's easy to understand the basics of these loans.

What Is A Fixed Rate Mortgage

As its name suggests, a fixed rate mortgage is a type of mortgage loan that has a set interest rate that never changes over the life of the loan. This means that your monthly payments won't change, your interest rates won't change, and you'll have a clear idea as to how to fit your mortgage into your budget at all times. This is in contrast to ARMs - Adjustable Rate Mortgages - that have interest rates that can change over time and change your monthly payments along with them.

In most cases, you'll have 15 or 30 years to pay off your mortgage. You'll agree upon the terms and the length of your mortgage when you receive it. It's important to choose one that fits your specific needs.

Pros And Cons Of The Fixed Rate Mortgage

There are a few pros and cons of using a fixed rate mortgage. Here's a rundown of the main advantages offered by this type of loan:

Stable monthly payments

Make it easy to predict monthly expenses and fit your loan into your budget.

No risk

Your loan payment won't rise to levels so high that you struggle to make them.

15 or 30-year terms

It's easy for you to select the loan option that fits your needs and your budget.

You can take out your mortgage with more confidence.

Potential Drawbacks

Like everything else in life, fixed-rate mortgages have potential negative attributes. Study them before jumping in.

The interest rates are fixed

Higher than the initial interest rates on an ARM would be. For longer terms, you will pay far more than you would for shorter terms.

The bottom line here is that fixed rate mortgages are generally the best option for those who are planning on staying in their home for years to come, thanks to the stability that they offer. This is why they're the most popular loan option for homeowners.

Getting your Loan

Getting the right loan for your needs is important, and shouldn't be a huge hassle that you struggle with. Contact a local mortgage team today to get the loan you need without the hassle.

Deb Klein Team

3115 South Price, Suite 115, Chandler, AZ 85248 480-550-0211

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The Deb Klein Team is the preferred home mortgage consultants located in Chandler, AZ. They are dedicated to finding great rates and loan options for their customers while providing fast turn times. The Deb Klein team has helped over 2000 customers achieve their dream of homeownership, and they are ready to assist you with your home financing.

Milo Birk

Jake and his team did a phenomenal job on my cash-out refinance! Every step of the way was well communicated and thorough. My situation was fairly unique but the team had no issue making it work and closing the loan. I had gone through other lenders before and I can almost guarantee they wouldn't have been able to make it work. My loan required creativity and strict adherence to lending guidelines, both of which the team navigated perfectly.

10-23-2019

Steve Lynch

Another painless 15-day close. Once again, Deb and team have provided a great experience. Between the exceptional customer service and communication, the efficient cloud-based document portal, and clear current/next-step emails, I can't imagine a better overall process in lending. Thanks team!

11-15-2019

Brandon Allen

I have no other word than Perfection! Deb Klein along with her very professional and skilled team have helped me achieve what I have desired in a timely and seamlessly manner! Highly Recommend ! Nothing else compares to the services and commitment that Deb and her team did for me!

10-29-2019

Evan Kurtz

Jake and team were incredibly thoughtful and creative in helping me think about various borrowing strategies for personal and investment purposes. I was greatly appreciative for the following: 1) Understanding - the team took the time to understand my goals and how I thought about personal and investment properties. The team helped me think through various borrowing practices for both long and short term deals 2) Timely execution - while working on a time constraint the team was fast to act and candidly fast to inform me when I needed to take action (thank you) 3) Easy to work with - Whether it was working with an actual team member or their client friendly portal, every step of the process was made easy and understandable Looking forward to working with the team again.

10-01-2019

Darlene Carmelotes

It has been an amazing experience working with Deb & her team. They worked above and beyond and exceeded all my expectations. I highly recommend this company to anyone. You’ll never be disappointed in their A+ costumer service. Great job!

08-21-2019

Roy J. DuPrez

Deb was SUPER helpful and was able to tactfully assist through some obstacles that enabled me to access the home I love living in today!

2018-09-18

Brian Lombardi

Deb has done several mortgages for me in the past. There's no one better when it comes to working on your behalf and her follow-up is impeccable. If you have a mortgage need, she's the one to go to.

2018-03-07