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Fixed-Rate Mortgages


Fixed and Fixed rate mortgages are fairly clear cut while ARM's require extra defining.  

Fixed rate fully amortizing loans have an interest rate and monthly payment that remains constant ( fixed )over the life of the loan.  The most common fixed rate loans are 15 year and 30 year mortgages (30 year being most popular).  During the early amortization period, a large percentage of the monthly payment is used for paying the interest.  As the loan is paid down, more of the monthly payment is applied to principal.  A typical 30 year fixed rate mortgage takes 22.5 years of level payments to pay half of the original loan amount.

Fixed-rate Advantages

  • Interest rate remains constant through the life of the mortgage even when market rates go up
  • Appealing to budget - when monthly principal and interest payment remains constant 
  • No anxiety over interest rate fluctuations.
  • Variety of payoff periods ( 10, 15, 20, 30, and 40 year terms)
  • Fixed rate loans provide the least risk to lenders over the long term
  • Great for home owners planning on living in the same home well beyond 5 years
  • Down payment as low as 3% of the purchase price
  • No anxiety over interest rate fluctuations.

Fixed-rate Disadvantages

  • More income needed to qualify because of higher initial mortgage rate
  • Payments won't drop when interest rates drop 
  • If interest rates decrease it will be necessary to refinance to get a lower payment
  • The longer the term, the higher the rate charged by the lender
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© MTG Brokers Corp. 2003, 2004

MTG Brokers Corp. conducts business as a COMMERCIAL Mortgage Broker throughout the U.S.A.
(All 50 States) including Loan Origination, Processing, and Commercial Financing Consultation

ALABAMA, ALASKA, ARIZONA, ARKANSAS, CALIFORNIA, COLORADO, CONNECTICUT, DELAWARE, FLORIDA,
GEORGIA, HAWAII, IDAHO, ILLINOIS, INDIANA, IOWA, KANSAS, KENTUCKY, LOUISIANA, MAINE, MARYLAND,
MASSACHUSETTS, MICHIGAN, MINNESOTA, MISSISSIPPI, MISSOURI, MONTANA, NEBRASKA, NEVADA, NEW
HAMPSHIRE, NEW JERSEY, NEW MEXICO, NEW YORK, NORTH CAROLINA, NORTH DAKOTA, OHIO, OKLAHOMA,
OREGON, PENNSYLVANIA, RHODE ISLAND. SOUTH CAROLINA, SOUTH DAKOTA, TENNESSEE, TEXAS, UTAH,
VERMONT, VIRGINIA, WASHINGTON, WEST VIRGINIA, WISCONSIN, WYOMING


AL, AK, AZ, AR, CA, CO, CT, DE, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, MA, MD, ME, MI, MN, MS, MO,
MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY


MTG Brokers Corp. conducts business as a RESIDENTIAL Mortgage Broker in Colorado that can also
originate Residential financing in the following States under the license of an affiliated mortgage contractor:

Alabama, Alaska, Arkansas, Arizona---Pending, California, Colorado, Connecticut, District Of Columbia, Delaware,
Florida, Georgia, Idaho, Illinois---Submitted & Pending, Kansas---Submitted & Pending, Louisiana---Pending, Maine,
Maryland, Massachusetts, Missouri, Michigan *--- 2nd Mortgage Submitted & Pending, Nevada, New Hampshire *,
New Jersey *--- 2nd Mortgage Submitted & Pending, New Mexico, New York, North Carolina, Ohio, Pennsylvania,
Rhode Island--- Submitted & Pending, South Carolina--- Submitted & Pending, Tennessee, Texas, Vermont,
Virginia, Washington--- Submitted & Pending

AL,AK,AR,CA,CO,CT,DE,FL,GA,ID,ME,MD,MA,MO,MI*,NV,NH*,NJ*,NM,NY,NC,OH,PA,TN,TX,VT,VA.

* We Are Not Licensed For Residential 2nd Mortgages