Fixed Rate Mortgage

What it is

A fixed-rate mortgage is the most common home loan in the United States. The interest rate is set the day you close and does not change for the life of the loan, whether that term is 10, 15, 20, or 30 years.

Each month you pay the same principal and interest. Property taxes and insurance may rise or fall, so a payment that includes escrow can still change, but the loan portion is fixed. That makes long-range budgeting straightforward.

Fixed-rate loans come in conforming sizes, which follow Fannie Mae and Freddie Mac guidelines, and in jumbo sizes above the conforming limit for the county. The term is the main lever: a shorter term costs more each month and much less in total interest.

Who it fits

• Buyers who plan to stay in the home for 5+ years
• Borrowers who want payment certainty for tax and budget planning
• Refinancers replacing an adjustable-rate loan
• First-time homebuyers who want a payment they can plan around

How it runs

1. 1Pre-QualifyShare income, debt, and credit details so we can outline the programs and loan amounts you are likely to qualify for.
2. 2Apply & LockComplete the application and lock the rate for a defined period while the file is processed.
3. 3UnderwritingDocumentation, appraisal, and title work run in parallel. Purchase loans commonly take 30 to 45 days from contract to closing.
4. 4Close & Move InSign the closing documents and take possession under the terms of your contract.