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    What is a Fixed-rate Loan?

    A fixed-rate mortgage is the most common type of mortgage loan program. With a fixed-rate mortgage, your monthly principal and interest payment will stay the same for the life of your loan. You can expect to make the same principal and interest payment each month regardless of changes in current market interest rates.

    How do Fixed-rate Mortgages Work?

    You will often hear the term amortization when learning about fixed rate mortgages. An amortization schedule is a fixed table that lays out how much of your monthly payment goes towards interest and how much go towards principal for the life of the loan. Fixed-rate mortgages are fully amortizing. This means the principal and interest owed on the loan are paid when your term ends. Each month, a portion of each payment you make is allocated to the interest owed; the rest of your payment reduces your principal balance. With a fixed rate mortgage, your monthly payment of principal and interest will remain the same; however, during the initial years of your mortgage, most of your monthly payment will go toward your loan's interest. However, as the loan ages, larger portions of each payment will reduce the principal. If you mortgage includes an escrow account, a portion of your monthly payment will also go towards your escrows.

    What Types of Fixed-rate Mortgages are There?

    There are many different types and terms for fixed-rate mortgages. They can be as short as 10-years, or as long as 30-years. You can also get a conventional, FHA, VA, or USDA mortgage with a fixed interest rate. Your loan officer can help you determine which loan type and term will be the best for you.

    Is a Down Payment Required for a Fixed-rate Loan?

    Depending on the type of fixed-rate mortgage that you choose, the down payment requirement will vary. For example, if you are eligible for a VA loan, no down payment is necessary. Other loan types and their corresponding down payments will be determined by other factors.

    What are the Advantages of a Fixed-rate Loan?

    The biggest advantage of a fixed-rate mortgage is that the interest rate never changes. This means that the interest and principal portions of your payment remain consistent over the life of your loan. Even when interest rates rise, you can rest assured that your payment of principal and interest will not increase. 

    Programs & Features of Fixed Rate Loans:

    • Fixed Interest Rate Means a Steady, Consistent Payment
    • A Great Option for First Time Homebuyers
    • No Prepayment Penalties at Standard Mortgage.


    Mortgage rate options

    Every homebuyer has unique needs. Standard Mortgage strives to meet them with quality service and individual attention. We pride ourselves in giving you the mortgage information, loan options, and convenient assistance you’re looking for, including what to expect when you apply for a mortgage loan. With a variety of loan programs and an established network of lenders behind us, we help you find the loan that best suits your needs and at a competitive rate.

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    Adjustable Rate Mortgages (ARM)

    An adjustable rate mortgage (ARM) is based on a predetermined index and margin, which can go up or down at specified intervals based on the index.

    Conventional Loans

    A conventional loan must meet nationally standardized guidelines, such as income, credit, and property requirements. Loans are subject to amount limits set by Fannie Mae and Freddie Mac.

    Federal Housing Administration (FHA)

    The Federal Housing Administration — commonly referred to as HUD — issues loans that provide affordable mortgages to the average homebuyer.

    Fixed Rate Mortgages

    A fixed-rate mortgage is the most common type of mortgage program. Your monthly payments for interest and principal never change.


    A jumbo loan, or non-conforming mortgage, is for homebuyers who expect to borrow more than $424,100 for single-family residences.

    USDA Rural Development

    A USDA Rural Development loan helps rural home buyers purchase a home with no down payment, low fixed rates, simple credit requirements, and the guarantee of the federal government.

    Veterans Administration (VA)

    Veterans Administration loans help veterans — including active duty service personnel and certain categories of spouses — finance the purchase of their homes with favorable loan terms.

    Buying a home can seem like the most complicated financial process in the world, especially if you've never done it before.  

    Standard Mortgage is here to help you navigate the daunting, complicated process that lies ahead. In this eBook, we’ll walk you through the eight steps you’ll have to take before you hold the keys to your new home.


    Home Mortgage Buyer's Guide