This "traditional" type of loan maintains its original interest rate
throughout the entire life of the loan. (Any change in monthly loan payments will be due to
increases in other charges like insurance or taxes that will naturally occur over
time.) Fluctuations in market rates, over the term of your loan, won't have any impact on
the amount of interest you pay because that rate is already "fixed."
Why do members choose a 15-year fixed rate term?
BEST CHOICE IF
- You plan on staying in the home long-term
- You need your monthly payments to remain fixed over the life of the loan
- You would like to pay off the loan balance quickly
ADVANTAGES
- Reliability - principal and interest payments remain the same, so
there is no risk that changing market conditions will increase the monthly payments
- Faster Ownership - pay off the loan in half the time of a traditional
30-year mortgage
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out of 11 member reviews
