The traditional fixed rate mortgage is the most common type of loan program, where monthly principal and interest payments never change during the life of the loan. Fixed rate mortgages are available in terms ranging from 10 to 30 years and in most cases can be paid off at any time without penalty. This type of mortgage is "amortized" so that it will be completely paid off by the end of the loan term, and is very stable and predictable.
Even though you have a fixed rate mortgage, your monthly payment may vary if you have an "impound account" which refers to funds collected by lenders to pay property taxes when they are due. These are often for borrowers with less that 20% down when purchasing. One of our many benefits is most of our lenders DO NOT require an impound account which can save you a lot of "Up Front" money needed to close. Call for more details.
