Fixed-Rate Mortgage Loans

What is a fixed-rate mortgage?

A fixed-rate mortgage is the most popular type of home loan. The interest rate for the entire loan term is set at the beginning. Your monthly payment will stay the same, making it easier to budget. Choose between a 15, 20, or 30-year fixed term. Fixed-rate loans are also available through federal home buying programs such as FHA loans

Fixed-Rate Mortgage Benefits

• Consistent monthly payment: It’s easier to integrate your mortgage payment into your budget when it never changes. 
• Protection from rising rates: It doesn’t matter if interest rates go up. Your fixed-rate loan will stay at whatever percentage you “locked in” at the beginning.  
• No pre-payment penalty: Most fixed-rate mortgages don’t come with a pre-payment penalty. You can pay extra when your income allows to pay your house off early.

When to Choose a Fixed-Rate Mortgage

Our Mortgage Loan Originators can help you find the best mortgage loan option to match your needs and budget. If the predictability of a fixed-rate mortgage appeals to you, this option is available as a conventional loan as well as a government-insured mortgage such as a VA, FHA, or USDA loan. 

Adjustable-Rate Mortgages (ARM loans) are the primary alternative to a fixed-rate loan. ARM loans usually have lower introductory rates, which may appeal to home buyers who don’t plan to own the house long-term. If you believe interest rates will continue to stay low, you may also be interested in an ARM loan. 

For homebuyers who plan to live in the house long-term and desire stability, a fixed-rate mortgage may be the best option.

Do more with The Fauquier Bank!

We are a proudly independent community bank with nine branch locations in Northern Virginia: Manassas, Haymarket, Bristow, Gainesville, Warrenton, The Plains, New Baltimore, Catlett, and Bealeton. As one of the only community banks serving Prince William and Fauquier counties, we reinvest our profits back into the local towns we serve. TFB mortgage customers can expect a personalized experience from beginning to end, as our friendly and knowledgeable Mortgage Loan Originators guide you through the application and closing process. Speak with a local mortgage lender, give us a call, chat with us, apply online, or visit your nearest TFB office. 

Fixed-Rate Mortgage FAQs

• How does mortgage interest work?
  With a fixed-rate mortgage, you’ll pay the same percentage of interest on your principal balance over the life of the loan. So, the longer you take to repay the loan, the more interest you’ll pay overall. The payments on a fixed-rate loan stay the same from month to month, but the ratio of interest to principal changes. For the first 5-10 years, more of your monthly payment will go to interest.
• How are mortgage rates calculated?
  The fixed interest rate is an annual percentage. In terms of monthly payments, the interest you pay is calculated by dividing your annual rate by 12 and then multiplying it with the principal. There are a variety of factors that go into the calculation of a particular individual’s interest rate, including your credit score and the property type.
• What is a 30-year fixed mortgage?
  Fixed-rate mortgages are usually available in terms between 15 and 30 years. So, a 30-year fixed mortgage means your monthly payments will be calculated to result in a zero principal balance by the end of the 30-year term. You will end up with a lower monthly payment but pay more in interest over the life of the loan.

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