Fixed Rate
Home Loans
Vision Home Mortgage - Offering Fixed Rate Mortgage Options
What is a Fixed-Rate Mortgage?
A fixed-rate mortgage is one of the most popular home loan features for buyers looking for stability and predictability. With a fixed-rate mortgage, the interest rate remains the same throughout the life of the loan, so you know exactly what your monthly mortgage payment will be from the start. This consistency can help you budget more effectively and avoid the surprises that may come with Adjustable Rate Mortgages. Fixed-rate mortgages are available with almost any time of home loan program available!
What are the Benefits of a Fixed-Rate Mortgage?
One of the main benefits of a fixed-rate mortgage is the predictability of payments. Knowing that your monthly principal and interest payment won’t change offers peace of mind and makes budgeting easier. Additionally, a fixed-rate mortgage protects you from rising interest rates; if market rates increase, your fixed-rate stays locked, ultimately saving you money over time. Fixed-rate loans are also ideal for long-term ownership. If you plan to stay in your home for a significant period, the stability that a fixed-rate mortgage provides can be incredibly valuable.
What is Included in Your Payment?
Your fixed-rate mortgage payment covers a few key parts: the principal, which is the amount you borrowed to buy your home, and the interest, which is what the lender charges you for the loan. Since the interest rate on a fixed-rate mortgage doesn’t change, your payment for these two parts stays the same every month—giving you stability and making it easier to plan your budget. If you have an escrow account, your monthly payment may also include property taxes and homeowners insurance, which can fluctuate each year. However, your payment for the loan itself (principal and interest) won’t change, helping you enjoy a sense of financial security and predictability as a homeowner.
Is a fixed-Rate Right For You?
A fixed-rate mortgage is ideal if you value predictability in your budget and prefer a straightforward loan structure. It's especially beneficial for first-time buyers or those who want to avoid the complexity of fluctuating payments. However, if you anticipate selling or refinancing within a few years, an adjustable-rate mortgage may offer lower initial rates and monthly payments.
