Metro Brokers Financial

Fixed Rate Mortgages

With a fixed rate mortgage, the interest rate is set for the full length of the loan and doesn't change. Since monthly mortgage payments for principal and interest stay the same for the life of the loan, it's easier to plan a budget using this sort of loan.

Fixed Rate Mortgages differ in length of time. The most commonly offered Fixed Rate Mortgages are 15-year and 30-year Fixed Rate Mortgages. However, 20-year Fixed Rate Mortgages are also available.

30-year Fixed Rate Mortgage

The 30-year Fixed Rate Mortgage is the most common loan product. Many home buyers, especially first-time buyers, choose this option because it provides them with lower payments over a longer period of time

There are several advantages to using a 30-year over a 15-year Fixed Rate Mortgage. The longer you extend the term of your financing, the lower your monthly payment will be.

If you aren’t planning to retire soon, have tight budget constraints and want the lowest monthly payment possible, a 30-year Fixed Rate Mortgage is the best option.

20-year & 15-year Fixed Rate Mortgage

If you can afford more on your monthly payment, the 20-year or 15-year Fixed Rate Mortgage is recommended.

Historically, interest rates on these mortgages are lower than those on 30-year loans. Because the lender does not need to keep the debt for as long, this makes the 20-year and 15-year mortgages less risky options for the lender.

As a result, the repayment period is lower and you will pay less interest overall. In some cases, this could equal hundreds of thousands of dollars in savings in the long run.

Many home buyers who are approaching retirement consider these types of mortgages so they can pay off their mortgage early in their retirement.

Metro Brokers Financial, Inc., 5775-D Glenridge Drive, Suite 200, Atlanta, Ga. 30328 A Georgia Residential Mortgage Licensee # 5892. NMLSR Unique Identifier # 163853. 404-847-2525