Fixed Rate Mortgage

What is a Fixed-rate Mortgage?

With a fixed-rate mortgage, the interest rate never changes for the life of the loan; the monthly payment of principal and interest stays constant. But, your total mortgage payment can still change based on property taxes or homeowners insurance rates. Fixed-rate mortgages can be for conventional loans, Federal Housing Authority (FHA) loans, or Department of Veteran Affairs (VA) loans.

Why a Fixed Rate Loan Might Be a Good Option For You

Fixed-rate mortgages can be a great option for a lot of homebuyers because of their stability. But, you need to be aware of some of the drawbacks for fixed-rate loans as well. Fixed-rate loans may not be good for homebuyers who are planning to sell their home in 5-10 years. Consider these other benefits and drawbacks of fixed-rate loans.

Fixed-rate loan benefits

  • Your principal and interest payment stay the same during the loan.
  • Fixed-rate loans make it easier to plan your budget long-term.
  • A little bit of the principal gets paid off with each month.
  • You can usually make extra payments without any pre-payment penalty.
  • Locking in a low-interest rate will help you save money over time.

Fixed-rate loan drawbacks

  • Interest rates are usually higher than adjustable-rate mortgages or interest-only mortgages.
  • The principal is paid off slower than adjustable-rate mortgages because payments in the first few years mostly go to interest.
  • It is more difficult to qualify for a fixed-rate loan than adjustable-rate mortgages or interest-only mortgages.
  • Closing costs are higher for fixed-rate conventional loans.
  • You may be stuck with a relatively high-interest rate if rates go down.

30-year vs 15-year

30-year fixed-rate mortgages: These are the most popular type of loans because homebuyers can to lock into a low rate from the very beginning.


  • Lower monthly payments than a 15-year fixed-rate mortgage
  • The interest rate does not go up during the life of your loan
  • Payments (principal and interest) stays the same for 30 years


  • Higher interest rate than a 15-year fixed-rate mortgage
  • Interest rate stays the same even if interest rates go down


15-year fixed-rate mortgages: These allow you to pay off your loan faster and lock into a more attractive lower interest rate.


  • Lower interest rate than a 30-year fixed-rate mortgage
  • They give you the ability to build equity faster
  • If interest rates go up, yours is fixed at the lower rate


  • Higher monthly payment stays the same even if interest rates go down
  • Interest rate stays the same even if interest rates go down

We’re Here to Help

Main Number: (405) 722-5626
Here at Financial Concepts Mortgage, we believe in offering a variety of loan types to make sure you get what you need. If a fixed-rate loan doesn’t seem right for you, we can help you find the loan options most beneficial for your situation. It can be difficult to understand the differences between the many home loan types; we are here to answer any question you may have.

Although we primarily serve homebuyers in Oklahoma, we are also able to provide loans to anyone in Texas and Arkansas.