Fixed-Rate loans are the most popular type of mortgage loan because the loan is based on an interest rate and monthly Principle / Interest payment that does not change over time. The property taxes and insurance costs may fluctuate, but many borrowers find fixed-rate home loans to be the best mortgage for their needs because they can create a budget and rely on a steady payment. Fixed-rate mortgages are offered on all Conventional, FHA, VA and Jumbo loan products.
Most company’s offer fixed-rate mortgages in terms of 15 or 30-years, however, you can ask for alternatives such as 10 or 20 year terms. The longer the term, the higher the interest rate will be. The longer term however, generally creates a lower payment because the payback is spread out over more years.
When it comes to mortgages, the fixed rate loan has been around for a long time. The fixed rate loan has been suiting people’s needs and helping them create a better and brighter financial future. One of biggest benefits of the fixed rate loan is the benefit of knowing. When people get this kind of loan, they essentially know what they can expect to be paying from month to month. At Fairway Independent Mortgage Corporation in Sacramento, our fixed rate loan services allow you to achieve the security of knowing.
What Is a Fixed Loan?
This type of credit comes originally from the United States Federal Housing Administration and was created to combat what was known as the balloon payment mortgage. In the balloon payment mortgage system, the agreement to pay back the money borrowed doesn’t lay out a fully periodical system of regular payments. The problem with this system is that the money owed often builds up, like a balloon, leaving the client with a big and daunting sum to pay at the end of the borrowing term.
A fixed rate loan system means fixed and steady payments. At Fairway Mortgage Corporation, we understand how mortgage payments can balloon out of control, which is why we strive to match you up with the right fixed rate loan for you. Our fixed rate loan is designed to spread out the payments regularly, so you don’t have to pay one big payment all at once.
Benefits of Our Fixed Rate Loan Services
The benefit of this type of lending is that it can provide you with a sense of stability. For most people, that sense of stability comes the fact that a fixed rate mortgage gives you the opportunity to create a budget.
Budgeting finances is somewhat of an overlooked task, but it is one of great relevance to your life. Budgeting finances allows you to prioritize your wants and needs and stay ahead of the financial game. Fixed rate loans, because it is a fixed interest rate every month, allow you to calculate the monthly cost of your mortgage and budget it into your expenses over short-term or long-term periods. We want to give our clients that option of budgeting at Fairway Mortgage Corporation through our fixed rate loans.
How We Work to Support You
Our fixed rate loan process supports you throughout. For all of our mortgages, the process for applying is very straightforward.
The first step of the process is the application. In this step, you will fill out an application, either in person or remotely.
You then meet with a loan officer who will work with you to figure out your options based on your various factors, credentials, and documents included in your application.
From there your application is processed by our company and reviewed by the underwriter. If you are approved for your credit, we will then meet with you to sign for it and give you the funding.
Mobile and Convenient Services
If you are interested in a fixed rate loan in Sacramento, another benefit is that once you receive it, you can reasonably figure out your monthly payments from the ease and convenience of your smartphone. We proudly offer a mortgage calculator app. This app is available on Android, iPhone, iPad and iPod touch.
Greg Sandler - The Mortgage Banker With The Experience You Can Depend On