Fixed Rate Mortgage
A fixed-rate mortgage maintains the same interest rate for the life of the loan. That means the principal and interest portion of your monthly mortgage payment will never change.
30 Year Fixed Rate
The interest rate is fixed for 30 years and the mortgage is fully amortized (or paid off) in 30 years if the normal payment schedule is followed.
20 Year Fixed Rate
The interest rate is fixed for 20 years and the mortgage is fully amortized (or paid off) in 20 years if the normal payment schedule is followed.
15 Year Fixed Rate
The interest rate is fixed for 15 years and the loan is fully amortized (or paid off) in 15 years if the normal payment schedule is followed.
10 Year Fixed Rate
The interest rate is fixed for 10 years and the loan is fully amortized (or paid off) in 10 years if the normal payment schedule is followed.
Fixed Rate Balloon Mortgage
7/23 Conforming Mortgage
The rate is fixed for a period of 7 years and then converts to a new fixed rate for the remaining 23 years. The new rate is typically based on the Fannie Mae net yield index and is added to a pre-determined margin. Note that converting to this new rate is permitted only if the prescribed conditions are met and if not, then the loan is due and payable to the lender as a balloon loan (review your loan documents carefully). The loan is fully amortized (or paid off) in 30 years if the normal payment schedule is followed.
5/25 Conforming Mortgage
The rate is fixed for a period of 5 years and then converts to a new fixed rate for the remaining 25 years. The new rate is typically based on the Fannie Mae net yield index and is added to a pre-determined margin. Note that converting to this new rate is permitted only if the prescribed conditions are met and if not, then the loan is due and payable to the lender as a balloon loan (review your loan documents carefully). The loan is fully amortized (or paid off) in 30 years if the normal payment schedule is followed.
30/15 (30 due in 15)
The rate is fixed for a 15 years and the payment is amortized over 30 years to provide for a lower monthly payment. This loan is due and payable as a balloon loan at the end of 15 years.
