Fixed rate mortgages are a very common type of loan. When fixed rate mortgages are established, the interest rates which are current at the time will stay constant throughout the life of the mortgages.

A big advantage of fixed rate mortgages is that your payments do not go up, even if rates change greatly. Your fixed rate mortgage interest rate doesn’t change – it’s locked in. This can provide a great protection in these days of economic flux. No one knows how significantly interest rates may change in coming years.

Ah, but what if the economy turns the other way and interest rates go down significantly? Refinancing at a lower fixed interest can resolve the problem and save you lots of money! By locking in lower rates on your outstanding balance you can save large sums of money.

Since interest rates change rather quickly, if you are considering purchasing a home you may want to become pre-qualified. When you talk to the lender about pre-qualification, find out if you can lock in the current interest rate. If interest rates are decreasing then this of course might be a bad idea.

If you want to find data about fixed mortgages and their history, you can learn more at http://mortgage-x.com/trends.htm. At this site, you can see a chart showing the significant interest fluctuations on mortgages with fixed interest. From a low of 5.26% in mid-2003 to as high as well over 20% in mid 1981, the range of rates over time change drastically.

There are also Internet sites showing projected trends for future interest rates on fixed mortgages. While these are conjecture, they are based on information which allows financial experts to make a “best guess.”

Loan interest rates follow the prime rate. If prime goes up, mortgages will soon follow in most cases. If the prime rate goes down, expect to shortly see home loan rates go down (in most cases). Loan rates usually average from 1.5% to 3% above prime.

Locating a source for your fixed interest home mortgage needs is as easy to calling your local lending institution or bank. Another source to consider is the Internet. Many Internet lenders accept application for mortgages right on their website. Thereby you may be able to avoid the hassle of filling out reams of hardcopy papers. You fill in some basic data and submit the information to the website. Very quickly – sometimes in only minutes – you will have an answer regarding your fixed interest rate and payment amounts.

Even more useful are online loan calculators where you can “play” with the loan figures to learn how differences of only 1 to 2 points higher can impact your payments. You can also learn how a decrease of only 1 or 2 points can save you greatly on your loan.


Contact A Broker Now

There is a lot to learn about loans to become a smart mortgage holder. By using the Internet to your advantage, you can educate yourself before filling out a loan application or going to your local lender to apply for a fixed mortgage.

It’s never too soon to begin the learning process. Even if you don’t expect to purchase a home for another year, it is wise to start learning and keep up to date on changes in mortgage rates. 

Often, moving quickly can save money while delaying can cost you money. Other times, the situation is exactly the opposite. Don’t rush too quickly into an attractive interest rate in a declining market. Just next week, the rates could be lower. Study all the facts about fixed mortgage rates.

A well-educated home buyer is a home buyer who will keep more money in their pocket. Become that well-educated buyer. Then you are ready to find the fixed rate mortgage to buy just the home you and your family desire.

Advantages of Fixed Rate Mortgages



Browse this section:
Different Mortgage Types

The Monthly Mortgage

The Jumbo Mortgage

Bank Mortgages

15 Year Mortgages

30 Year Fixed Mortgages

Interest Only Mortgages

Fixed Rate Mortgages

Second Mortgages

Bi Weekly Mortgages

First Time Home Buyers

Bad Credit Mortgages

First Time Buyers with Bad Credit