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Comfort can be found in predictability. If you prefer to know exactly how much your monthly payment will be and how much you’ll ultimately pay in interest over time, this mortgage option may be calling your name. With a fixed-rate mortgage, your monthly principal and interest payment will stay the same until every cent is paid off. There’s no need to worry about fluctuating interest rates.
1A 5.0% down payment on a 30-year, fixed-rate loan of $380,000 with an interest rate of 6.250% / 6.511 % APR will have 360 monthly principal and interest payments of $2,339.73. Payments shown do not include taxes, homeowners’ insurance, or mortgage insurance (if applicable). Actual payments will be higher. This is assuming a New Jersey purchase transaction, 65-day lock, 95.00 % LTV, 740 FICO, detached single family, owner-occupied, closest to zero discount points, rates change daily.