Fixed-rate mortgages are the most common type of home loan in the United States. They offer borrowers a clear picture of the overall costs of buying a home by maintaining a locked APR throughout the term of the loan. Due to the risk of setting a fixed interest rate over a long period of time, these types of loans usually have a bit higher interest rates than their adjustable-rate counterparts. Due to the variable nature of adjustable loans, however, it's nearly impossible to predict which type of loan is less expensive over the long term.
The fixed-rate mortgage was initially developed and standardized by the Federal Housing Administration in order to provide an alternative to balloon-payment loans that often left borrowers facing foreclosure. When you get a loan with a fixed rate, you'll know exactly how much you owe month to month, and you'll know that your home will be completely paid off at the end of the term (full amortization.) In addition, you'll be protected against market fluctuations and changes in inflation.
At Community Bank of Bergen County New Jersey, we offer a prestige line of fixed-rate mortgages. While we may be just a small bank compared to the big guys, we provide great mortgage products and benefits. We understand that our customers have a wide range of budgets, so we offer 15-, 20-, 25-, and 30-year loans. Our fixed-rate mortgages have:
When you call or visit our office, one of our experts will work closely with you during the entire loan process. All decisions regarding your application take place locally, so we can usually provide a quick and clear answer. Our loan products come with lots of different options to meet your unique home buying situation.
While fixed-rate loans have the advantage of not changing over time, they do tend to have higher initial rates than adjustable loans. If you're not sure which is right for you, one of our mortgage originators will be happy to discuss the risks and rewards of each. Don't hesitate to visit our contact your local CBBCNJ branch today to find out if a fixed-rate mortgage is right for you.