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Home Loan Executives offers everything from low interest, low down payment FHA and VA fixed rate mortgages to high dollar amount Jumbo Loans.
We can provide you with the best fixed-rate mortgage program with the lowest mortgage rate for your home purchase or refinance.
Below you will find some more in-depth information on fixed rate mortgages as well as explainations of common types of fixed-rate loans. For more information, feel free to give Josh Miller a call at (520) 360-7360 or send us an email at Josh @ JCMillerMortgage.com!
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FHA and VA home loans are government insured loans and typically offer the lowest interest rates and lowest down payments of all types of fixed-rate mortgages. Additionally, these loans are generally much easier to qualify for than other types of mortgage loans... Read More >>>
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Fixed Rate Mortgages - In Depth
With a Fixed Rate Mortgage (FRM), the interest rate and your monthly mortgage payments remain fixed for the life of the loan. Fixed rate mortgages are generally available for 40, 30, 25, 20, 15, 10 and occasionally 50 years. Generally, the shorter the term of a loan, the lower the interest rate you could get.
30 year and 15 year fixed rate mortgages are the most common throughout the U.S.
With a traditional 30 year fixed rate mortgage, your monthly payments are lower than they would be on a shorter term loan. If you can afford higher monthly payments however, a 15 year fixed rate mortgage allows you to repay your loan twice as fast (thus building equity at a much faster rate) and save more than half of the total interest costs of a 30-year loan.
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15-Year Fixed |
30-Year Fixed |
| Loan Amount: |
$200,000.00 |
$200,000.00 |
| Interest Rate: |
5.75% |
6.25% |
| Monthly Payment: |
$1,660.82 |
$1,231.43 |
| Total Interest Paid: |
$98,947.43 |
$243,316.39 |
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For example: If you had a 30 year fixed rate mortgage for $200,000 , you would have a mortgage payment of $1231.43 per month, but by the time the mortgage is paid in full, you would have paid $243,316.39 in interest alone. With a 15 year fixed rate mortgage, your monthly payments would be $1660.82, but you would have only paid $98,947.43 in Interest over the life of the loan.
It should also be noted that the payments on fixed rate fully amortizing loans are calculated so that at the end of the term the mortgage loan is paid in full. At the beginning of the loan, most of the monthly payment is used for paying the interest. As the loan is paid down, more of the monthly payment is applied to principal, as illustrated on our graph:
Of course there are many tips and tricks we have developed to help you save money and pay off your mortgage sooner. For instance, by setting up a bi-weekly payment strategy and paying half of the monthly mortgage payment every 2 weeks, you can pay off a 30 year fixed rate mortgage within 18 to 19 years.
Other Types of Fixed Rate Mortgages
- Basic 30/25/20/15/10-Year Fixed Rate Home Loans
You want the stability of a fixed principal/interest payment over the life of the loan. Down payments as low as 5%.
- Balloon Loans
Balloon loans are short-term fixed rate loans that have fixed monthly payments based usually upon a 30-year fully amortizing schedule and a lump sum payment at the end of its term. Usually they have terms of 3, 5, and 7 years.
The advantage of this type of loan is that the interest rate on balloon loans is generally lower than 30- and 15- year mortgages resulting in lower monthly payments. The disadvantage is that at the end of the term you will have to come up with a lump sum to pay off your lender, either through a refinance or from your own savings.
Balloon loans with refinancing option allow borrowers to convert the mortgage at the end of the balloon period to a fixed rate loan -- based upon the outstanding principal balance -- if certain conditions are met. If you refinance the loan at maturity you need not be requalified, nor the property reapproved. The interest rate on the new loan is a current rate at the time of conversion. There might be a minimal processing fee to obtain the new loan. The most popular terms are 5/25 Balloon, and 7/23 Balloon.
- Reduced Rate Option Home Loans
You plan to stay in your home for a long time and want a lower rate. Reduced rate in exchange for limits on refinancing and early principal reduction for the first 5 years.
- No Down Payment Home Loans
For borrowers with limited-to-no down payment who want to purchase a home. We offer conventional loan programs that allow you to combine a 1st mortgage and a 2nd mortgage to use as equivalent for 20% down to avoid mortgage insurance. These are referred to as "80/20" loans.
We also offer FHA mortgage programs, and along with popular "gift" programs like Ameridream, allow you to purchase a home with no money down. This is currently the most popular and most affordable way to purcahse a home with no money down.
- Low Down Payment Home Loans
You want to put down just 3% or 5%. No maximum income/earning restrictions and loan amounts up to $417,000.
- Low Documentation or No Documentation Home Loans
You have excellent credit and want to avoid paperwork.* Down payments as low as 5%. Very little or no paperwork (also known as a "no doc" or stated income, stated asset loan or SISA loan); as little as a 5% down payment.
- Construction Loans
You are building or significantly renovating a home and want to avoid the extra cost of two closings (construction loan and permanent loan). One application, one qualification process, one closing, and one set of closing costs. Interest-only payments during construction, the choice of adjustable rate or fixed mortgage products and the option of permanent loan rate protection available for up to 18 months.** Loans up to $2 million. Wide variety of program options.
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Joshua C. Miller
Loan Officer
(520)360-7360
Josh@JCMillerMortgage.com
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The Federal Reserve has just lowered interest rates once again which has sent mortgage rates to their lowest point in years!
If you live in Arizona, now is the time to refinance your home. We currently have the best rates on all types of mortgage products in the entire state of Arizona.
If you have purchased your home within the last 20 years, there is a chance we can save you hundreds of dollars per month on your home mortgage.
Give us a call today!
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