A fixed-rate mortgage means the interest rate will not change over the life of the loan. Each month you will pay back some of the loan principal and some interest on the loan to the lender. Monthly payments for a fixed-rate loan will not change throughout the term of the loan. You will have the same, set payment each month.

There are two main fixed-rate loan terms, those are 15- and 30-year terms. Generally speaking, the lower the term, the lower the interest rate it carries. However, it is important to choose loan terms that fit your budget and financial situation.

  • Advantages: monthly principal and interest payments are constant and predictable for the term of the loan, which makes budgeting for other things easier.
  • Disadvantages: if interest rates decline in the market, in order to take advantage of a lower interest rate, one would have to refinance your existing mortgage, and incur all of the costs of refinancing. This could also cause a problem if property values are falling. Interest rates are also generally higher than ARM rates.


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3301 Boston Street
Baltimore, Maryland 21224
Phone: (888) 561-2265
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Certain restrictions apply. Loan approval subject to borrower qualification, completion of application and verification of homeownership. Rates and programs are subject to change without notice. Satisfaction of credit qualifications and occupancy. Loan pricing can only be locked through a home mortgage consultant. This collateral piece is provided as a convenience, does not serve as a substitute for a borrower's actual loan documents, and is not a commitment to lend. Borrowers should become fully informed by reviewing all of the loan and disclosure documentation provided. While we believe these products could be beneficial to you, there may be other mortgage products we can offer you for which you may qualify. We would also be happy to discuss those options with you. For more helpful information about residential mortgage products, please visit http://www.1stmarinerbank.com/loanoptions.