FIXED RATE LOANS
The most common type of mortgage program in the US is the Fixed Rate. Here your monthly payments which are based on the amount, the interest rate and principal never change. Property taxes and homeowners insurance are not included in the Loan and as such may increase. By in large your monthly payments will be very stable.
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FIXED RATE LOAN BENEFITS
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Down payments as low as 3.5%
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Lower credit score accepted
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Flexible qualification guidelines
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Fixed-rate and adjustable-rate loan options
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Refinance up to 96.5% current home value
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Cash out and debt consolidation financing
What is a Fixed Rate Loan?
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.) Efinity Mortgage would like our consumers to beware of these as there is typically a cost to the “biweekly” program and can usually be done for free by adding additional principal in each payment.
Fixed rate fully amortizing loans
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. For Example, A typical 30 year fixed rate mortgage takes 22.5 years of level payments to pay half of the original loan amount.
