Question 1

What is a fixed-rate mortgage and how does it work?

Accepted Answer

A fixed-rate mortgage locks in your interest rate for the entire life of the loan. Your monthly principal and interest payment stays the same from the first payment to the last, regardless of what happens with market interest rates. This predictability makes budgeting easier and protects you from rising rates.

Question 2

Should I choose a 15-year or 30-year fixed-rate mortgage?

Accepted Answer

It depends on your financial goals. A 15-year fixed mortgage typically offers a lower interest rate and you pay significantly less total interest, but your monthly payments will be higher. A 30-year fixed mortgage has lower monthly payments, giving you more cash flow flexibility, but you pay more interest over time. Your loan officer can run both scenarios to help you decide.

Question 3

What credit score do I need for a fixed-rate mortgage?

Accepted Answer

Most conventional fixed-rate mortgages require a minimum credit score of 620, though you will generally receive better interest rates with scores of 740 or higher. FHA fixed-rate loans may accept scores as low as 580. Your specific rate depends on your credit score, down payment, and overall financial profile.

Question 4

How much down payment do I need for a fixed-rate mortgage?

Accepted Answer

Down payment requirements vary by loan type. Conventional fixed-rate mortgages can require as little as 3% down for qualifying first-time buyers, while 5%-20% is more common. Putting down 20% or more eliminates the need for private mortgage insurance (PMI). FHA fixed-rate loans allow as little as 3.5% down.

Question 5

Can I refinance from an adjustable-rate mortgage to a fixed-rate mortgage?

Accepted Answer

Yes, refinancing from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage is one of the most common reasons homeowners refinance. This locks in a predictable payment and protects you from future rate increases when your ARM adjusts. Contact us to discuss whether the timing and numbers make sense for your situation.

Question 6

Are fixed-rate mortgage rates the same at every lender?

Accepted Answer

No. Fixed-rate mortgage rates vary between lenders based on their pricing, overhead, and risk assessment. The Consumer Financial Protection Bureau recommends shopping multiple lenders because even a small rate difference can save you thousands over the life of your loan. We are happy to provide a competitive quote.

Fixed Rate Mortgage

Common types of fixed rate mortgages

15-Year Fixed

30-Year Fixed

How it Works

Frequently Asked Questions

Related Resources

Sources