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." A Fixed Rate Mortgage loan may be a good choice if you:
Want the security of knowing your interest rate will not change, nor will your monthly payment, unless property tax and insurance amounts change
Plan to stay in this home for several years
You don't expect your income to increase significantly in the coming years
Fixed rate Mortgage Loans come in various terms such as 10, 15, 20 or 30 years. In determining the length of your loan, you may want to consider:
Total amount of interest you want to pay over the course of your loan
For example, the total cost of a 30-year loan in terms of the interest paid on the loan is higher than the total cost of a 10, 15, or 20-year loan. With a 30-year loan, you have the advantage of lower monthly payments due to the longer loan term.
With a 15-year loan, you have the advantage of repaying the loan more quickly with higher monthly loan payments.
Your ability to make high monthly payment
If you can afford to pay more per month, you reduce the number of months you have to pay. Also, choosing a 15-year term will save you thousands in interest charges vs. the typical 30 year term
Another option to decrease the amount of interest you pay is to get a 30-year loan, so you don't lock yourself into higher monthly payments, but pay a little "extra" each month towards the principal when you are able to do so.
10 Yr Fixed Rate Reset Mortgage
Best Choice If:You love options! The Rate Reset feature of your new LGE Rate Reset Mortgage Loan gives you greater economic security you can initiate interest rate changes at the "click" of your mouse. After you lower your rate, your remaining loan term stays the same it's not a new loan. If you have a fixed-rate home loan, you can lower your rate throughout your loan term.
Advantages:Flexible Pricing Options - Fixed Interest Rate (unless you reset it to a lower one!) 10 Year Term gets your loan paid off very quickly! No mortgage refinance is needed to execute a future reset, which means no new closing costs or points. No new appraisal, underwriting, credit check, or additional paperwork is needed. No prepayment penalties!
Disadvantages:You must wait 12 months after closing your mortgage before the first opportunity to lower your rate. After the initial 12 months, you can lower your rate as often as every year. Your loan must be current with NO late payments in the past 12 months. To lower your rate, the new rate must reduce your current rate by at least 0.25%. P&I payment is one of the highest we offer due to the short amortization period. A modification fee may apply.
15 Yr Fixed Rate Reset Mortgage
Best Choice If:You love options! The Rate Reset feature of your new LGE Rate Reset Mortgage Loan gives you greater economic security you can initiate interest rate changes at the "click" of your mouse. After you lower your rate, your remaining loan term stays the same it's not a new loan. If you have a fixed-rate home loan, you can lower your rate throughout your loan term.
Advantages:Flexible Pricing Options - Fixed Interest Rate (unless you reset it to a lower one!) 15 Year term gets your loan paid down much faster than
a 20 or 30 Year term. No mortgage refinance is needed to execute a future reset, which means no new closing costs or points. No new appraisal, underwriting, credit check, or additional paperwork is needed. No prepayment penalties!
Disadvantages:You must wait 12 months after closing your mortgage before the first opportunity to lower your rate. After the initial 12 months, you can lower your rate as often as every year. Your loan must be current with NO late payments in the past 12 months. To lower your rate, the new rate must reduce your current rate by at least 0.25%. 15 Year loans have a higher P&I payment than 20 or 30 Year loan terms due to the shorter amortization period. A modification fee may apply.
20 Yr Fixed Rate Reset Mortgage
Best Choice If:You love options! The Rate Reset feature of your new LGE Rate Reset Mortgage Loan gives you greater economic security you can initiate interest rate changes at the "click" of your mouse. After you lower your rate, your remaining loan term stays the same it's not a new loan. If you have a fixed-rate home loan, you can lower your rate throughout your loan term.
Advantages:Flexible Pricing Options - Fixed Interest Rate (unless you reset it to a lower one!) 20 Year Term is a great option between a 15 Year and 30 Year Term; a faster amortization than a 30 Year loan term, but offers a lower payment than a 15 Year loan term. No mortgage refinance is needed to execute a future reset, which means no new closing costs or points. No new appraisal, underwriting, credit check, or additional paperwork is needed. No prepayment penalties!
Disadvantages:You must wait 12 months after closing your mortgage before the first opportunity to lower your rate. After the initial 12 months, you can lower your rate as often as every year. Your loan must be current with NO late payments in the past 12 months. To lower your rate, the new rate must reduce your current rate by at least 0.25%. Longer amortization period than a 15 Year loan and higher P&I payment than a 30 Year loan term. A modification fee may apply.
30 Yr Fixed Rate Reset Mortgage
Best Choice If:You love options! The Rate Reset feature of your new LGE Rate Reset Mortgage Loan gives you greater economic security you can initiate interest rate changes at the "click" of your mouse. After you lower your rate, your remaining loan term stays the same it's not a new loan. If you have a fixed-rate home loan, you can lower your rate throughout your loan term.
Advantages:Flexible Pricing Options - Fixed Interest Rate (unless you reset it to a lower one!) 30 Year Term, so you have a low payment. No mortgage refinance is needed to execute a future reset, which means no new closing costs or points. No new appraisal, underwriting, credit check, or additional paperwork is needed. No prepayment penalties!
Disadvantages:You must wait 12 months after closing your mortgage before the first opportunity to lower your rate. After the initial 12 months, you can lower your rate as often as every year. Your loan must be current with NO late payments in the past 12 months. To lower your rate, the new rate must reduce your current rate by at least 0.25%. 30 Year term is a long amortization period. A modification fee may apply.
Mortgage Rates
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