With a fixed-rate mortgage, your interest rate stays, well, fixed for the life of the loan.
That means your principal and interest payments will also stay the same for all the years on your mortgage. Keep in mind, however, there could be slight adjustments to the total monthly mortgage payment if your property taxes or homeowners insurance change during your loan term.
A fixed-rate mortgage is a favorite among borrowers. You can typically lock in a competitive interest rate. Even if rates in the market increase, your rate won’t change unless you decide to refinance to a different one. With a fixed-rate mortgage, there's also the benefit of lower payments that can be spread out over many, many years, which could help borrowers qualify for a larger loan amount.
What You Need:
- Your driver's license
- Your social security card
- Payment stubs for the past month
- Contact information for your landlord
- Copies of your past two tax returns if you are employed
- Copies of your past three tax returns if you are self employed
- An accounting of regular monthly bills, including account numbers
- A profit and loss statement for the current year if you run a business
- Three months of statements for all of your savings and investment accounts