Fixed Rate Mortgages
Vision Home Mortgage - Offering Fixed Rate Mortgage Options
What is a fixed-rate mortgage?
The traditional fixed-rate mortgage is the most common type of loan program, where monthly principal and interest payments never change during the life of the loan. Fixed Rates are available with FHA, USDA, VA, Conventional, and more. Fixed-rate mortgages are available in terms ranging from 10 to 30 years and can be paid off at any time without penalty. This type of mortgage is structured, or "amortized" so that it will be completely paid off by the end of the loan term. There are also "bi-weekly" mortgage payments, which shorten the loan by calling for half the monthly payment every two weeks. (Since there are 52 weeks in a year, you make 26 payments, or 13 "months" worth, every year.)
What is included in your payment?
Even though you have a fixed rate mortgage, your monthly payment may vary if you have an "impound account". What is an impound account? In addition to the monthly loan payment, most lenders collect additional money each month for the prorated monthly cost of property taxes and homeowners insurance. The extra money is put in an impound account by the lender who uses it to pay the your property taxes and homeowners insurance premium when they are due. This allows the payments to be made monthly instead of one lump sum. If either the property tax or the insurance happens to change, your monthly payment will be adjusted accordingly. This is evaluated every year and you are notified of any changes. However, the overall payments in a fixed rate mortgage are very stable and predictable. Additionally, if mortgage insurance is needed it is included in your monthly payments and is based on a percentage of the loan amount.
Is a fixed-rate right for you?
Are you looking to have predictable home payments that stay the same? Fixed-rate is the loan for you. The ability to plan your finances around your home loan payments staying the same. The freedom to pay more if you need, or want to. There are many reasons why this option would be the right one for you. Call us today to have one of our experienced loan officers guide you through the loan process.