Fixed Rate Mortgages

Lock In a Low Fixed Rate for Years to Come

Are you interested in a mortgage that will make it easier for you to budget for the future? America’s Mortgage Resource with offices in Metairie, New Orleans, Baton Rouge and Mandeville, LA offers great rates on fixed rate mortgages, making the amount of every loan payment predictable for the term of the loan. 

Fixed rates are simple to easy understand. Like their name implies, fixed rates remained fixed throughout the lifetime of the loan. This means that the interest rate is guaranteed to remain at a constant specific rate. Each month, the amount of the principal balance being paid will vary, while the payment remains the same. The initial payments will largely go towards paying the interest on the loan, while the later payments will cover more of the principal balance.

Benefits of Fixed Rate Loans

Fixed rate mortgages account for roughly seventy-five percent of all loans granted each year. There are many reasons why homeowners enjoy fixed rate mortgages:

Low Interest Rates – Because the interest rates are fixed, you are guaranteed your set rate even if interest rates increase over the years. The shorter the term of your loan, the more favorable the interest rate will likely be.

Predictable Payments – The primary plus for choosing fixed rates is the predictability. Regardless of the fluctuations in the housing market, your interest rates and payments will continue to be the same amount throughout the entire term of the loan.

Refinancing Your Fixed Rate Loan

The only potential drawback to a fixed rate loan is that interest rates may fall below your fixed rate at some time in the future. If you want to take advantage of the lower interest rates, it is possible to refinance your loan in order to reduce your fixed rate. When refinancing, you may be held responsible for closing costs. Consult with a loan specialist before making any refinancing decisions.

Fixed rate mortgages typically have 10, 15, or 30-year terms. A shorter loan period means a more attractive interest rate, while a longer loan period will generally allow for lower fixed monthly payments. Speak to a loan officer at America’s Mortgage Resource with offices in Metairie, New Orleans, Baton Rouge and Mandeville, LA to discuss the option that would be best for you.