What Is a Fixed Home Mortgage?

Discover the best fixed home mortgage rates online. Apply today for approval in minutes, and use historically low rates for personal advantage.

Lenders provide two distinctly different types of loans for financing real estate. A traditional loan stipulates a fixed rate of interest. A loan of this type is a fixed home mortgage. Additionally, real estate loans are available with an interest rate that fluctuates in response to a designated financial index. A loan of this type is a variable rate mortgage.

Fixed Home Mortgage Basics

A fixed home mortgage payment does not change over the life of a loan. Borrowers know with certainty the amount of each monthly payment. Loans terms typically range from 15 to 30 years. Optionally, borrowers may choose a balloon note with monthly payments for a set term before paying the balance in full or refinancing. Balloon terms range from one year to any agreed term.

Adjustable Rates

Lenders offered adjustable-rate home mortgages as an option for borrowers when interest rates and inflation were high. Rather than lock in a permanent interest rate at record high levels, adjustable rates allow interest to decline over time. The index used to determine interest rates varies among lenders.

Historic Opportunity

The collapse of the U.S. economy created a rich opportunity for homeowners. Interest rates today remain at historically low levels. Borrowers paying variable rates may refinance at a fixed rate and insure against future rate increases. Inevitably, the economy will rebound and financial indexes will eventually climb to new highs.

Compare options

The best lenders offer both variable rates and fixed home mortgages. Borrowers may refinance each type of loan to benefit from market swings. All reputable lenders welcome applications and a few specialize in poor-credit lending. The application process is easy and internet approval is available in minutes.