Frequently Asked Questions
This is a personal choice. However, about 92% of homes with mortgages have a fixed rate mortgage. Fixed rate mortgages have an interest rate that won’t change for the term of your loan, so you’ll have the same interest rate at every interval for the duration of your term. An adjustable rate mortgage starts as a fixed rate for a set amount of time. When that period is up, you’ll switch over to a variable rate. Throughout the life of your loan, your rate will go up or down based on the prime rate.
If you’re not sure which is for you, then our Mortgage Bankers are always happy to speak with you. You can also learn more about fixed vs adjustable rate mortgages with this article.
You have several options to lower your mortgage rate, both before and after signing on the dotted line. This is what you can do:
- Improve your credit score to access competitive rates
- Consider a short mortgage term, which could offer a lower rate than a long term
- Lock in rates when they’re low
- Make a large down payment to reduce your principal loan
- Buy mortgage points to reduce your interest rate
- Refinance your mortgage when rates are low
You can also speak with a Mortgage Specialist to plan your path to a lower rate.
Fixed rate mortgages lock in an interest rate for the duration of your mortgage term. A term typically lasts 15-30 years, depending on what you choose.
This is different from an adjustable-rate mortgage (ARM), where lenders provide a comparatively low fixed interest rate during an introductory period. When that introductory period expires, the interest rate adjusts to the current market rates. ARM rates continue to change periodically – usually every six months
You can use our calculator to get a sense of what a fixed rate mortgage payment could look like. Simply enter this information:
- The purchase price of your home (or the maximum price in your range, to be safe)
- Your intended down payment, either as a percent or a hard number
- Your desired term length (up to 30 years)
- The interest rate discussed with your lender
Note: if you haven’t spoken to a lender about rates, then you can try searching online for the mortgages rate of the day as a placeholder. It’ll help you get an idea of what your mortgage payments could be.