A fixed rate mortgage does exactly what its name promises: the interest rate — and your principal-and-interest payment — stays the same for the entire life of the loan. No surprises in year 12 because the market moved in year 11. For most buyers, that predictability is worth a great deal.
Your choices: the classic 30-year fixed spreads payments out for the lowest monthly cost; the 15-year fixed builds equity much faster and carries a lower rate, at a higher monthly payment; and 20-, 25-, and even custom terms sit in between. Fixed rates are available across conventional, FHA, VA, USDA, and jumbo programs, so “fixed” is really a decision you layer onto whichever program fits you.
Good fit if: you plan to stay in the home a while, you budget best with stable payments, or today’s rates are attractive enough that you never want to think about them again. I’ll model the real difference — monthly payment and total interest — between a 30- and 15-year on your price range, so the term you pick is a strategy, not a default.
True Home Lending is operated by Navaneet Dutt, Mortgage Loan Originator, NMLS #2262708, with Loan Factory, NMLS #320841. All loans are subject to credit and property approval. Program availability, rates, terms, and conditions are subject to change without notice and may vary by state, lender, and borrower profile. Not all applicants will qualify. This content is for education only and is not a quote, a loan approval, or a commitment to lend. Equal Housing Opportunity.