Top 10 Fixed Rate Mortgages

Use one of the top 10 fixed rates mortgages to ensure you're paying the lowest amount possible for that new house. Fixed rate mortgages are those which have an interest rate which either will never change over the life of the original mortgage, or will only do so after several years (this will be explained further in the article.) There are different kinds of fixed rate mortgages, each with individual distinctions, so it should not be too hard to find one which suits your needs.

1. Fannie Mae: Fannie Mae is the common way to which the “Federal National Mortgage Association” is referred. Fannie Mae is a government-sponsored enterprise, and while it does not provide fixed rate mortgages, or any other types of mortgages for that matter, it does help those financial institutions which do lend money to home buyers ensure that they have enough money to make the loans.
2. Freddie Mac: You can consider Freddie Mac, or the “Federal Home Long Mortgage Association” as Fannie Mae’s brother. Both are government-sponsored enterprises, and both help institutions and organizations which do offer fixed rate mortgages, as well as other types, to have the money to do so.
3. Ginnie Mae: Since we’ve got a family analogy going, this makes Ginnie Mae Fannie Mae and Freddie Mac’s sister. Ginnie Mae, however, acts as a link between the Federal Housing Authority and lenders who deal with fixed rate mortgages (and, of course, other types). If you have ever had a VA (Veteran’s Administration) or HUD (Housing and Urban Development) loan, you most likely dealt with Ms. Ginnie Mae.
4. ARMs: ARM stands for adjustable-rate mortgage. These can be considered a type of fixed rate mortgages as they start out at a fixed rate for a period of years, before changing interest rates according to the current rate. This type of mortgage can also be considered one of top ten because it allows for smaller number of years (seven to ten as opposed to fifteen to 30) to be financed.
5. FHA loan: As mentioned earlier, FHA stands for Federal Housing Authority. Fixed rate mortgages that are backed or secured through the FHA make it possible to obtain a home loan with a lower down payment, as little as 3.5% compared with the usual 20% or more.
6. VA loan: Not everyone will be eligible for a Veteran’s Administration loan; however, if you have ever served in the military, you should go ahead and check into whether or not you qualify. Like FHA loans, fixed rate mortgages can be obtained with a lower down payment, and some types of VA loans may require no down payment at all.
7. Bank loan: A fixed rate mortgage loan can actually be acquired from more than one source. However, if you choose to deal directly with a bank when applying for your loan rather than a mortgage broker (someone who “shops around” for you in an effort to locate the best terms) you may not have to pay an additional fee, known as a broker fee.
8. Loans with different repayment plans: This includes the number of years that you may pay on fixed rate mortgages (for example, fifteen instead of 30), and even the number of times a month you can pay on a mortgage (every two weeks instead of once a month).
9. Current Account Mortgages: These types of fixed rate mortgages are fairly new to the United States. In this type of mortgage, your bank account and mortgage account are linked together. Your salary is deposited into this account, and the amount of your mortgage is automatically deducted from your salary. From there, you can choose to pay more each month, allow the money left over to just “sit there”, or make use of it in other ways.
10. Those you can afford: Fixed rate mortgages will do you no good if you can’t afford the payments to begin with. Yes, interest rates are currently low, but as everyone knows, they do change. For this and other reasons, just because you can get a good deal on a home loan does not mean you should borrow the money if you don’t think you will be able to handle the payments throughout the life of the loan.