Welcome to Fixed-Rate-Mortgages.com. Our goal is to assist you in locating the right mortgage for your situation.  Please use the menu above to access our calculators and glossary for further help before you get started applying. Clicking on Apply, Rates, or Refinance will bring enable you to select from companies offering mortgage services online. Without further ado, below is a basic outline of the different types of mortgages and their characteristics.

Fixed rate mortgages are the most popular form of mortgage, one which allows you to lock in an interest rate for the term of your loan. If this weren't incentive enough, you may also buy-down a lower interest rate. What does this mean? Let's say the best rate you have found is 8% from XYZ Mortgage Bankers. For 1% of your mortgage amount- $1000 on a $100,000 mortgage you can buy the rate down to 7.75%. Should you do this? That would all depend on how long you plan to stay in the house and how long it would take you to break even on that $1000 out of pocket. 

Here is the breakdown-
                  100,000 Mtg for 30 yrs @ 8%     = 733.76 mo 
                  100,000 Mtg for 30 yrs @ 7.75% = 716.41 mo
                                                   Savings     = 17.35 monthly

• $1000 / $17.35 = 58 months to break even on the outlay. 
  Interest Savings over 30 years = $6246
• Same $1000 invested at 6%(compounded monthly) over 30 years = $6022.58. 

This example illustrates that the advantage isn't always that great. If you are struggling to get the downpayment for a home, $1000 may be a big deal and not to break even on it until almost the 5th year is something to think about.  Fact is, many americans put down all of their money on a home, only to move in with no safety net or cushion(cash in the bank).  ......something to consider.

Variable rate mortgages are the second most popular type of mortgage. Variable rate means just that- the interest rate you pay on the money you borrow will change. The interest rate you pay is tied to a major consumer index with a cap, or maximum interest rate you can be charged. Variable rate mortgages often allow you to get started with less money out of pocket, but the risk of increasing payments is always present due to interest rate fluctuation. 

Balloon mortgages- where you pay smaller monthly payments(while accumulating more interest charges of course) and at some pre-determined point, perhaps 15 years, the balance becomes due- IN FULL. Well at that point you can refinance it, or if you have been saving like you planned, pay off the remaining note.