Fixed Rate Mortgage
A fixed-rate mortgage is a loan with a set interest rate that does not change for the loan’s term, as opposed to a loan where the interest rate may adjust.
Anyone with an adjustable-rate mortgage can tell you about the shock that can come with first bill after the rate adjusts. Increases in monthly payments of hundreds, even thousands, of dollars are not uncommon. Avoid such unpleasant surprises and ensure your personal financial security with a fixed-rate mortgage – and always know what your payments will be. It’s the best defense against rising rates!
Hartford Funding products include historically low interest rates; down-payments as small as 5 percent; owner- and non-owner-occupied options; and tax credits up to $7,500. If you plan on staying in your home for several years, this may be your best option.
Generally, to be eligible to apply for an FHA loan, you must:
- Have a valid Social Security number
- Have lawful residency in the U.S.
- Be of a legal age to sign on a mortgage in your state
Hartford Funding Financial will also verify income, assets, liabilities, and credit history for all parties on the loan, and a non-occupant co-borrower is permitted.
To qualify for an fixed rate mortgage, applicants must meet specific employment, credit and income criteria, including the following conditions:
- Steady employment history, at least two years history of employment
- Consistent or increasing income over the past two years
- Any Chapter 7 bankruptcy on record must be at least two years old with good credit for the two consecutive following years.
- Any Chapter 13 bankruptcy on record must be in good standing for two (2) years with trustee permission to enter into new debt
- Any foreclosure must be at least five (5) years old
Private Mortgage Insurance (PMI) provides your lender with a way to recoup its investment if you are unable to repay your loan. PMI is usually required when the mortgage amount is higher than 80% of the home’s value. That means that if you buy a home with a down payment of less than 20%, you will probably have to pay for PMI.
Most mortgage loans have either a fixed interest rate or an adjustable interest rate. With a fixed-rate mortgage, the interest rate never changes and your payments remain stable throughout the life of your loan. With an adjustable-rate mortgage (ARM), the interest rate changes at regular intervals — usually once every year — based on a formula that uses a market index. For most ARM options, rate adjustments begin after an initial period — usually between three months and ten years — during which the rate is fixed.
A fixed rate is usually best if you plan to stay in your home for the long term and are buying at a time when rates are relatively low. An ARM is usually best if you plan to move before the rate adjustments begin, or if you are buying when rates are relatively high.
Locking your interest rate means your lender guarantees the rate on your loan even if market rates change before closing. Most lenders will allow you to lock your rate for 30 to 60 days, with the option to extend the rate-lock period for a fee. So how do you know whether to lock your interest rate? It depends on whether you expect rates to rise or fall before you close on your home. No one knows for sure which direction rates will go at a given time, so it’s difficult to make a reliable prediction. It helps to keep track of announcements from the Federal Reserve Board, whose monetary policies have an effect on mortgage rates, and to talk to a financial advisor about what may happen in the near term.
Hartford provides low rates whether you're buying a home, refinancing or looking for a home equity loan or home equity line of credit. We're considered one of America's fastest-growing and best-managed mortgage banks. Through 15 years of happy clients, our attitude is still "we've got a lot more to do". We continually strive to improve the quality of our service, financial products, and your borrowing experience. When you need a customized loan, think Hartford Funding.
Your mortgage consultant has the ability, at his or her fingertips, to provide you with a conditional approval decision in just in minutes during your very first phone call.
Hartford Funding Financial mortgage consultants are available to you-live and on the phone- 24 hours a day, 7 days a week. So whenever it's most convenient for you to apply, find out more information, and whenever you have questions about a loan in progress - your answers are just a quick phone call away.
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Fixed Rate Mortgage