Fixed Rate Mortgages
Box Home Loans offers Fixed Rate Mortgages in terms of 30 year, 20 year and 15 year mortgages. With a fixed rate mortgage the interest rate will never change. It is the same rate for the term of the loan regardless of the length of the loan.
The principal and interest payment will remain constant for the term of the loan. Your payment can fluctuate if you choose or your loan requires you to include escrows for property taxes and homeowners insurance premiums in your payment. These amounts fluctuate based on the premiums charged by your Insurance company and the property taxes determined by the local governing authority, but remember the principal and interest payment is fixed for the term of the loan.
Generally the interest rate will be lower if the term of the loan is shorter. So an interest rate for a 30 year mortgage is higher than an interest rate for a 20 or 15 year mortgage. The advantage of choosing a fixed rate mortgage with a shorter term is a lower rate and your loan will be paid off sooner, saving you thousands of dollars in interest payments. However, your payment will be higher because the term is shorter.
Fixed rate mortgages with loan amounts of $417,000 or below are called Conventional Conforming Fixed Rate Mortgages. The servicing of these mortgages are generally sold to FNMA (Federal National Mortgage Association) and FHLMC (Federal Home Loan Mortgage Corporation). Underwriting guidelines that the industry follows are determined by these two government agencies.
High Balance Conforming Fixed Rate Mortgages
Box Home Loans also offers High Balance Conforming Fixed Rate Mortgages in terms of 30, 20 and 15 years. These loans are also serviced by FNMA. These loan limits vary by geographic location and are for all loan amounts higher than $417,000. The High Balance Mortgages are available in high-cost areas. Again, just as in a conforming loan program, the interest rate is fixed for the term of the loan.
For any questions about our Fixed Rate Mortgages, feel free to chat with a representative immediately, email us, or give us a call at 877-905-0005.