Fixed Rate Mortgages

With a fixed rate mortgage the interest rate does not change for the term of the loan. The principal and interest portion of the monthly mortgage payment remains constant for the life of the loan.

Typically, the shorter the loan period, the more attractive the interest rate will be i.e. a fifteen year fixed rate mortgage will carry a more favorable interest rate than a thirty year fixed rate mortgage.
Payments on fixed-rate fully amortizing loans are calculated so that the loan is paid in full at the end of the term. In the early amortization period of the mortgage, a larger percentage of the monthly principal and interest payment is applied towards interest. As the mortgage is paid down, an increasingly larger portion of the monthly principal and interest payment is applied toward the principal.

A 30 year fixed rate mortgage is the most popular loan term.

Benefits:
  • Lower monthly payments than a 15 year fixed rate mortgage
  • Interest rate does not go up if interest rates go up
  • Payment does not go up, it stays the same for 30 years
Drawbacks:
  • Higher interest rate than a 15 year fixed rate mortgage
  • Interest rate stays the same even if interest rates go down

A 15 year fixed rate mortgage allows you to pay off your loan quicker and lock into an attractive lower interest rate.

Benefits:
  • Lower interest rate
  • Build equity faster
  • Interest rate does not go up if interest rates go up
Drawbacks:
  • Higher monthly payment
  • Interest rate stays the same even if interest rates go down

The knowledgeable mortgage professionals at Raleigh Mortgage Group, Inc. will analyze your current situation and to make sure you get the very best deal. Call 919-866-0212 or Apply online today.