Cheapest Fixed Rate Mortgages

Cheapest Fixed Rate Mortgages

A fixed mortgage rate is a mortgage where the interest rate stays the same all throughout the loan period. Your monthly payment for principle and interest total will stay the same too -- but in the beginning of the payback period most of the payment will be interest, with only a little bit of the principal paid. Each month the dollar amount of interest will be less and the dollar amount of the principle will be more -- usually giving you a little more equity in the house each month.

A fixed mortgage rate goes by several other names including fixed loan or conventional loan. They all mean the same thing. One thing that can differ is the time period of the loan. Most mortgages are for 30 years, but some can be for 15 and others as high as 40 years. If you opt for a shorter term mortgage, you will pay more each month than a 30 year loan but your home will be free and clear of a mortgage 15 years earlier.

Want the cheapest fixed rate mortgage? It may be here now. Rates are down now to under 5% as the federal government wants to help people lower monthly mortgage payments. This also helps fund the economic recovery as more people are able to become home buyers.

Where are the cheapest fixed rate mortgage deals? Lending Tree is a good place to start. You fill in your particulars and they send out your information to about 200 lenders. You will receive several offers usually in minutes. There is no cost or obligation to get a quote.

Nextag is similar. It offers to help you find the cheapest fixed mortgage rate that you qualify for. They match the lenders to the information you provide and send you the results for free. Nextag has over 17 million people that use their service each month.

AIG is a bank that issues mortgages. You will have no broker fee if you deal directly with them. You have the choice here of filling out the online form or calling a toll free number to speak with a loan specialist.