What is a Fixed-Rate Mortgage
Fixed Rate Mortgage – A fixed rate mortgage loan is used to buy or refinance a home in California! We can help you to go thru the loan process with our 2 Step program. Call Steve at 805-374-6000 for all the details.
A fixed-rate mortgage is a mortgage loan that has a fixed interest rate for the entire term of the loan. Generally, lenders can offer either fixed, variable or adjustable rate mortgage loans with fixed-rate monthly installment loans being one of the most popular mortgage product offerings.
Fixed-rate mortgages are generally offered as amortized loans with installment payments, however non-amortizing loans can also be issued with a fixed-rate. There are varying risks involved for both borrowers and lenders in fixed-rate mortgage loans. These risks are usually centered around the interest rate environment. In a time of rising rates, a fixed-rate mortgage will have lower risk for a borrower and higher risk for a lender. If rates are rising, borrowers typically seek to lock in lower rates of interest to save on interest rate costs over time. When rates are rising interest rate risk is higher for lenders since they have foregone profits from issuing fixed-rate mortgage loans that could be earning higher interest over time in a variable rate scenario.
We can obtain the best fixed rate loans! contact us today!
