Fixed-Rate Mortgages: Predictability and Peace of Mind

Buying a home is a big step, and knowing your monthly payment won’t change can make things a lot easier. A fixed-rate mortgage (FRM) locks in your interest rate for the life of the loan, so your principal and interest payments stay the same, no matter what happens in the market.

Fixed rates might start out a little higher than adjustable-rate mortgages (ARMs), but they give you long-term stability—no surprise rate hikes down the road. With mortgage rates still competitive, locking in a fixed rate now could mean lower interest costs over time.

15-Year vs. 30-Year Fixed Loans: What’s the Difference?

Most fixed-rate mortgages come in 15-year and 30-year terms, each with its own advantages:

• 15-Year Mortgage – Higher monthly payments but a lower interest rate, so you’ll pay off your home faster and save a lot on interest.
• 30-Year Mortgage – Lower monthly payments, making homeownership more affordable, though you’ll pay more in interest over time.

Here’s a simple example for a $100,000 mortgage:

15-Year Loan at 3.5%

Monthly Payment: $715

Interest Paid in First 5 Years: $15,187

Total Interest Paid Over Loan Term: $28,679

30-Year Loan at 4.0%

Monthly Payment: $477

Interest Paid in First 5 Years: $19,092

Total Interest Paid Over Loan Term: $71,870

A 15-year mortgage saves you a lot on interest, but a 30-year mortgage gives you more flexibility with lower monthly payments. The best choice depends on your budget and long-term goals.

Finding the Right Mortgage for You

At Nextgen Mortgage, we work with multiple lenders to find the best rates and terms for your situation. Whether you want the stability of a fixed-rate loan or need help exploring your options, we’re here to make the process easier.