Capital Line Funding Group

Fixed Rate Mortgage (FRM)

A fixed rate mortgage is one in which the interest rate is fixed for the life of the loan. The Fixed Rate Mortgage offers more security, more serenity and a greater peace of mind for the first-time homebuyer. These are a few of the reasons the FRM is the most popular loan one may obtain. Nearly three of four home mortgages are fixed interest rate mortgages.

An additional reason for the popularity of the FRM is there are few, if any, surprises; one knows in advance exactly what one’s monthly Principal  & Interest payment will be. In the first month or the 60th month of a thirty year mortgage, one’s mortgage payment remains the same. This constancy allows one to budget accordingly.

Features of a Fixed Rate Mortgage:

  • A Fixed Rate Mortgage “kills itself” through fully amortizing payment of principal, interest 
  • Loan Terms amortize over 15 /30 years; recently some seen at 40 /50 years
  • No complex adjustments, easy to understand , simple to implement.
  • FRM are less flexible than ARM loan; have higher initial monthly pmts.
  • FRM have higher interest rates because the fixed term is much longer.
  • Investors seldom attracted to FRMs’ preferring lower pmt., shorter hold.

Capital Line Funding Group can be reached at (858) 812-2063. Capital Line is a - a premier provider of both Residential Financing and Commercial Financing across the United States.

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