Fixed-Rate Home Loans

If you like to make long-term plans and you don’t like surprises, then a fixed-rate home loan is probably the best kind of home loan for you. Fortunately, Washington Mutual has a fixed-rate loan that you can live with for years to come.

What is a fix-rate loan? As the name implies, a fixed-rate loan is a loan with an interest rate that does not change. The payment that you make at the beginning of the loan is the same as the payment you make at the end of the loan. A fixed-rate loan provides you with a consistency that many people find necessary when making long-term financial plans.

When you get a fixed-rate loan your interest payment is fixed for the life of the loan, whether it is a 15-year loan, a 30-year loan or even a 40-year loan. No matter what happens to interest rates in the future, your rate will not change and your monthly payment will remain constant and unchanging for the life of the loan.

Generally speaking, you pay slightly more for the peace-of-mind of a fixed interest rate that is not subject to the ups and downs of the overall economy. If you believe that interest rates are more likely to be higher several years down the road than they are to be lower then a fixed-rate loan makes a great deal of solid economic sense and Washington Mutual has 15-year fixed loans, 30-year fixed loans and 40-year fixed loans.

In addition to standard fixed-rate loans, Washington Mutual also offers what is known as a 30-year loan due in seven years.

What this means is that you make payments on your mortgage for the first seven years as if you had a 30-year loan. At the end of the seventh year, your entire loan balance becomes due and payable. You have the option of either paying off the loan balance, or of refinancing the remaining 23 years of the loan at the then-prevalent interest rates.

The advantage to this type of loan is that the interest rate is less than you would pay for a straight 30-year fixed rate loan. The lower interest rate may allow you to qualify for a loan you would not otherwise have qualified for, or it simply may allow you to keep more money in your pocket every month.

The downside, obviously, is that if interest rates are higher when the seven years are up, then refinancing the remainder of the loan at the new higher interest rate will cost you more in the long run.

The point is, Washington Mutual gives you choices and options which help you structure a loan to suit your needs and your current and future financial situation.