Prompt Mortgage Company

Conventional Fixed

Fixed rate loan is a type of loan where the interest rate remains unchanged for the entire term of the loan. Majority borrowers prefer fixed rate loans as they can predict the monthly payments with accuracy. It is available in terms ranging from 10 to 30 years and can be paid off at any time without penalty. There are also bi-weekly mortgages, which shorten the loan by calling for half the monthly payment every two weeks.

Even though you have a fixed rate mortgage, your monthly payment may vary if you have an impound account. The extra money is put in an impound account by the lender who uses it to pay borrowers’ property taxes and homeowners insurance premium when they are due. If either the property tax or the insurance happens to change, the borrower’s monthly payment will be adjusted accordingly. However, the overall payments in the fixed rate mortgage are stable and predictable.

Key Features

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