What is a Fixed-Rate Mortgage Loan?

A fixed-rate mortgage loan is a home loan with an interest rate that remains the same for the entire term of the loan—most commonly 15 or 30 years.
(At Extreme Loans we are able to do conventional loans on 1 yr increments between 8 and 30 yrs)
Because the rate never changes, your monthly principal and interest (P&I) payment stays consistent, making fixed-rate mortgages one of the most stable and predictable home financing options available. Fixed-rate loans are offered across several programs, including  Conventional, FHA, and VA mortgages.

Over time, a larger portion of each payment is applied to your loan balance instead of interest, helping you build equity steadily. While fixed-rate mortgages often start with slightly higher interest rates than adjustable-rate loans, they provide long-term protection against rising rates.
For many borrowers, especially those planning to stay in their home, the 30-year fixed-rate mortgage remains the most popular choice due to its lower monthly payment.

Who Should Consider a Fixed Rate Loan?

Because your interest rate and principal-and-interest payment never change, fixed-rate mortgages are ideal for borrowers who value long-term payment stability.

This loan option is well suited for homebuyers who plan to stay in their property for several years, want predictable monthly housing costs, or prefer protection from future interest rate increases.

Fixed-rate loans are also commonly chosen by first-time homebuyers, growing families, and homeowners refinancing for peace of mind.

If You Own or Finance Numerous Properties…

Don’t worry—owning or financing multiple properties does not automatically disqualify you from a fixed-rate mortgage.
Borrowers may finance up to **four residential properties** (1–4 units each), including the subject property, regardless of whether the property is owner-occupied or an investment.

For each financed property beyond the subject property, lenders typically require **six months of reserves**. Reserves include principal, interest, taxes, and insurance (PITI).

You may own an unlimited number of additional properties, provided they are not financed.

Note:

Financed properties held in the name of an LLC or other corporation may be excluded from the financed property count, provided the borrower is **not personally obligated** on the mortgage.

Your Property is Ineligible for a Refinance or Cash-Out Refinance If…

A property may be ineligible for a refinance or cash-out refinance if it was listed for sale within the six months prior to the loan application date.

If you’re unsure whether this applies to your situation, a mortgage banker can review your scenario quickly.

MORTGAGE CALCULATOR
Estimate your monthly payment using our mortgage calculator, or speak directly with an experienced Extreme Mortgage Banker to review your options.

Call **844-CLOSE-FAST** to get clear answers and next steps—fast.