Purchase · Refinance
Fixed-Rate Mortgage Loans
A fixed-rate mortgage keeps the same interest rate for the life of the loan, so the principal and interest part of your payment never changes.
Your secure application is with Cornerstone First Mortgage, LLC (NMLS #173855). Starting an application is not a loan approval or a commitment to lend.
How Daniel explains it
This is the loan Daniel uses to teach his favorite lesson: when you buy, the price is set for good, and on a fixed-rate loan the rate is locked too.
What people miss is that a fixed rate doesn't mean a fixed total payment. Property taxes and homeowners insurance can still go up, and if they're paid through escrow, your monthly payment moves with them. Daniel walks through that part before you sign, so nothing about year two is a surprise.
How a fixed-rate mortgage works
- Your interest rate is set when the loan closes and stays the same for the full term.
- The principal and interest portion of your payment stays the same every month.
- Several term lengths are available. A shorter term generally means a higher monthly payment and less total interest over the life of the loan.
- Taxes and insurance collected through escrow can change from year to year.
When a fixed-rate mortgage may fit
- You plan to stay in the home for a long time.
- You want a predictable principal and interest payment for budgeting.
- You'd rather not take on the risk of a rate that can change.
What to know about a fixed-rate mortgage
- Fixed rates can start higher than the initial rate on an adjustable-rate loan.
- A down payment, an appraisal, and income and employment documentation are typically required.
- Closing costs and fees apply. Daniel will walk you through the APR and the full cost picture for your scenario.
Straight answers
Fixed-Rate Mortgage questions, answered
Does my payment ever change on a fixed-rate mortgage?
The principal and interest portion does not change. If your property taxes and homeowners insurance are paid through an escrow account, the total monthly payment can change when those costs change.
If rates go down later, am I stuck?
On a fixed-rate loan your rate is locked in. If rates fall later and you qualify, refinancing may be an option. It depends on market conditions, your eligibility, and the costs involved, and refinancing can increase total finance charges over the life of the loan.
Eligibility depends on borrower, property, and program requirements. Interest rates, products, and loan terms are subject to change without notice.
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Related mortgage programs
Purchase · Refinance
Adjustable-Rate Mortgage (ARM)
An adjustable-rate mortgage starts with a rate that's fixed for an initial period, then adjusts on a set schedule based on a market index.
How it worksPurchase · Refinance
FHA Loans
FHA loans are insured by the Federal Housing Administration and offer flexible guidelines that can fit buyers who are still building savings or credit.
How it worksHomeowners
Refinance
A refinance replaces your current mortgage with a new one under different terms, for example to change your rate, your term, or your type of loan.
How it worksReady when you are
Your mortgage starts here.
Ready to take the next step? Start your secure application. Not sure which program fits? Contact Daniel's team and he'll walk through your options in plain English.
Your secure application is with Cornerstone First Mortgage, LLC (NMLS #173855). Starting an application is not a loan approval or a commitment to lend.