Fixed Rate Home Loan

Fixed-Rate Home Loan Rates as Low As

You expect your income to remain the same in the coming years
You don't plan on moving for the foreseeable future
You want the security of fixed rates and payments that will only change if taxes and insurance change

Fixed-rate loans are available for 10, 12, 15, 20, or 30-year terms. What's the best length for your situation? Here are some things to think about:

Total interest you want to pay over the term. The total cost of interest on a 30-year loan is higher than the interest cost of a shorter loan. With a 30-year loan, you have lower monthly payments, but a higher rate.
Your ability to make a higher monthly payment. With a shorter term you pay the loan off faster, but you need to be able to afford higher payments. A 10-15-20 year term will also save you thousands in interest over a 30-year loan.

You plan on stating in the home long-term.
- Pro: Fixed rate of interest.
- Con: You end up paying more in interest charges over the life of the loan.
You think interest rates will increase.
- Pro: Level principal and interest payments for the full term of the loan.
- Con: Benefits of the fixed rate are not realized until after the 10th year.

You don't expect your income to increase significantly over the coming years.
- Pro: No risk that changing market conditions will increase your monthly payments.
You need to qualify for the largest loan possible.

You want to own your home more quickly.
- Pro: Reduces the mortgage term by 1/3.
- Con: Your monthly payment will be significantly higher than with a 30-year mortgage.
You want to retire debt free.
- Pro: Save significant amount of money in interest payments.

You want to own your home more quickly.
- Pro: Reduces the mortgage term in half.
- Con: Your monthly payment will be significantly higher than with a 30-year mortgage.
You want to retire debt free.
- Pro: Save significant amount of money in interest payments.
You'll be retiring in less than 30 years.
You want to stay in your home once you retire.

You want to own your home more quickly.
- Pro: Reduces the mortgage term by as much as 2/3.
- Con: Your monthly payment will be significantly higher than with a 30-year mortgage.
You want to retire debt free.
- Pro: Save significant amount of money in interest payments.
You'll be retiring in less than 30 years.
You want to stay in your home once you retire.

Refinance amounts up to $726,200 or less.
- Pro: Have equity in property and can afford accelerated payments.
- Con: Maximum loan amount is $726,200.
1-unit properties only.
- Pro: Look to position yourselves financially before retirement.
- Con: 1-unit properties only.
Low loan-to-value (LTV).
- Pro: Significant amount of savings in interest paid payments.
- Con: Maximum of two non-owner occupied 12-Year No Fee loans per member.
You want to pay points or closing costs.
- Pro: Less cash needed to close.
- Con: FICO (credit score) limitations and significantly larger payments.

For loan amounts from $726,201 to $977,500 for one-unit properties, $828,701 to $1,251,400 for two-unit properties, depending upon location of property.
- Pro: Fixed rate of interest and have level principal and interest payments for the full term of the loan.
- Con: Requires a minimum Representative Credit Score of 600 and only available for properties in California, Pennsylvania, and Washington.
You plan on staying in the home long-term.
- Pro: No risk that changing market conditions will increase your monthly payments.
- Con: Maximum loan amount determined by location of subject property.
You think interest rates will increase.
- Con: You end up paying more in interest charges over the life of the loan.
You don't expect your income to increase significantly over the coming years.
- Con: Benefits of the fixed rate are not realized until after the 10th year (10 Year ARM is a better option if loan is paid-off within 10 years).
You need to qualify for the largest loan possible.

You need expanded options for qualifying income.
- Pro: Low down payment.
- Con: Income limitation - not all members will be eligible.
You need flexible credit qualifications.
- Pro: Flexible sources for funds for down payment and closing costs.
- Con: Principal residences only (1-4 units).
If you have limited cash for a down payment
- Pro: Flexibilities for income sources used to qualify.