Buying a house is a big decision, but you don’t have to make it alone. At American United Federal Credit Union, we’re always by your side to help. One popular option for buying the home of your dreams is a fixed-rate mortgage.
What Is a Fixed Rate Mortgage?
A fixed interest rate loan is a type of long-term loan used to purchase a home. Some types of financing for business owners and individuals have variable interest rates. That means the amount of interest you owe can change over time, possibly resulting in larger monthly payments.
Fixed-rate mortgages work differently. Instead of calculating interest rates periodically based on market conditions, these home loans lock in your preferred rate from the start. No matter what happens with market rates, you always pay the same amount each month.
Homebuyers have several options for fixed-rate financing, including 15-, 20- and 30-year mortgages. We’re flexible, so we can help you find the right fit for your lifestyle.
What Are the Advantages of Fixed Rate Mortgages?
There are many reasons why fixed interest rates are an excellent choice for home buyers.
- Stable monthly payments: It’s easier to plan your monthly budget if you know exactly how much your mortgage payments are.
- Permanent interest rates: No matter what happens with the market, your interest rate is locked in.
- No prepayment penalties: Fixed-rate mortgages usually don’t have any prepayment penalties. You can set aside a little extra each month and reduce the total number of payments.
- Balanced principal payments: With this kind of financing, you pay off your principal, not just interest.
The best fixed-rate mortgage term depends on your financial goals. There’s usually a trade-off between the length of term and total interest paid.
Why Choose Us?
At American United Federal Credit Union, we do our best to give you an amazing home-buying experience. We want you to have the home of your dreams, and we help you finance your purchase in the best ways possible:
- We’re transparent and honest
- We put your needs first
- We help you compare options
- We answer all of your questions
- We have high tech solutions
At American United Federal Credit Union, we’re more than lenders. We’re friends, members of the Utah communities that we serve, and financial consultants. We can sit down with you and help you decide which mortgage option is best for your monthly budget, lifestyle and family. Apply for a fixed rate mortgage right away to buy a home you love.
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