Fixed Rate

The Fixed-Rate mortgage provides a fixed payment for interest and principal payments for the life of the loan.  These rates are usually higher than the initial rates of Adjustable-Rate mortgages.  A primary benefit of the Fixed-Rate is that there is no unexpected rate change shock.  Typical amortization periods are 15 and 30 years.

Down payment requirements depend upon the particular loan program chosen.  VA loans (up to a certain limit) have no down payment requirement.  FHA requires at least 3.5%, Home Ready and Home Possible programs require at least 3%.