A Fixed Rate loan may be a good choice if you:
- Do not want your interest rate or monthly principal payment to change over the life of the loan.
- Plan to stay in this home for several years.
- Don't expect your income to increase significantly in the coming years.
Fixed rate loans maintain their original interest rate throughout the entire life of the loan and are available with several term options. (Any change in monthly loan payments will be due to increases in other charges like insurance or taxes that will naturally occur over time.)
Fluctuations in market rates, over the term of your loan, won't impact the amount of interest you pay because the rate is already "fixed".
Additional Fixed Rate Loan Options
- VA Loan - No down payment is required, in most instances, for a VA Home Loan. Additionally, there is no private mortgage insurance requirement. This makes a VA Loan an option to consider for those who qualify, including: most members of the military, veterans, reservists and National Guard members.
- FHA Loan - Typically, a Federal Housing Administration loan is easier to qualify for than other loan types due to lower credit score and lower down payment requirements.
Best choice if:
- You plan on staying in the home long term.
- You need your monthly principal and interest payments to remain fixed over the life of the loan.
- You would like to pay off the loan balance faster.
Advantages:
- Level principal and interest payments for the full term of the loan.
- No risk that changing market conditions will increase your monthly principal and interest payments.
- This product will pay off the loan balance the quickest.
Disadvantages:
- Monthly payments are higher than a 30-year mortgage.
Best choice if:
- You plan on staying in the home long term.
- You need your monthly principal and interest payments to remain fixed over the life of the loan.
- You would like to pay off the loan balance faster.
Advantages:
- Level principal and interest payments for the full term of the loan.
- No risk that changing market conditions will increase your monthly principal and interest payments.
- The loan balance will decrease faster than a 30-year mortgage.
Disadvantages:
- Monthly payments are higher than a 30-year mortgage.
Best choice if:
- You plan on staying in the home long term.
- You need your monthly principal and interest payments to remain fixed over the life of the loan.
- You would like to pay off the loan balance faster.
Advantages:
- Level principal and interest payments for the full term of the loan.
- No risk that changing market conditions will increase your monthly principal and interest payments.
- The loan balance will decrease faster than a 30-year mortgage.
Disadvantages:
- Monthly payments are higher than a 30-year mortgage.
Best choice if:
- You plan in staying in the home long term.
- You need your monthly principal and interest payments to remain fixed over the life of the loan.
Advantages:
- Level principal and interest payments for the full term of the loan.
- Allows for higher loan amount qualification and enhanced buying power than shorter term loans.
- No risk that changing market conditions will increase your monthly principal and interest payments.
Best choice if:
- If you are active duty military or Veteran.
- You plan on staying in the home long term.
- You need your monthly principal and interest payments to remain fixed over the life of the loan.
- You would like to pay off the loan balance faster.
Advantages:
- No down payment required.
- No monthly mortgage insurance.
- Level principal and interest payments for the full term of the loan.
- No risk that changing market conditions will increase your monthly principal and interest payments.
- The loan balance will decrease faster than a 30-year mortgage.
Disadvantages:
- Monthly payments are higher than a 30-year mortgage.
Best choice if:
- If you are active duty military or Veteran.
- You plan on staying in the home long term.
- You need your monthly principal and interest payments to remain fixed over the life of the loan.
Advantages:
- No down payment required.
- No monthly mortgage insurance.
- Level principal and interest payments for the full term of the loan.
- Allows for higher loan amount qualification and enhanced buying power than shorter term loans.
- No risk that changing market conditions will increase your monthly principal and interest payments.
Best choice if:
- You plan on staying in the home long term.
- You need your monthly principal and interest payments to remain fixed over the life of the loan.
Advantages:
- Low or no down payment required.
- Low origination fees.
- Reduced interest rate. Level principal and interest payments for the full term of the loan.
Disadvantages:
- Additional mortgage insurance may be required.
Best choice if:
- You are purchasing an investment property.
- You need your monthly principal and interest payments to remain fixed over the life of the loan.
Advantages:
- Level principal and interest payments for the full term of the loan.
- No risk that changing market conditions will increase your monthly principal and interest payments.
Disadvantages:
- Requires a higher down payment (than a primary residence) or ownership interest in the property.
Standard credit qualifications apply. All loans are subject to final credit approval. Please consult your tax advisor, as interest paid on these loans usually is tax-deductible. Financing on homes in Colorado. The interest on the portion of the credit extension that is greater than the fair market value of the dwelling is not tax deductible for federal income tax purposes. Consult a tax adviser for further information regarding the deductibility of interest and charges.
