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Adjustable Rate Mortgages / Fixed Rate Mortgages / Combination Rate Mortgage

Fixed-Rate Mortgages (FRMs)

As the name implies, these mortgages offer you a fixed interest rate and stable monthly principal and interest payments for the life of the loan. Many homebuyers like the security that comes from having their principal and interest established at the outset. Harris offers a wide range of fixed rate term options, allowing you to build equity at a pace that suits your personal financial goals. A fixed-rate mortgage may be an excellent choice if:

• You expect to own your home for a long time.
• You want the advantage of fixed monthly principal and interest payments, either because you expect your income to be constant in future years, or you want housing costs to be a decreasing percentage of your growing income.
• You desire lower rates and more rapid equity growth through the shorter amortization periods available with most fixed-rate loans.
• You're applying for a mortgage when fixed interest rates are relatively low.

At Harris Bank, our fixed-rate mortgages are available in a wide range of terms, but the most common are 15- or 30-year terms. Which is better? It depends. With a 15-year mortgage, you pay off your mortgage more quickly by making higher monthly payments. Your equity -- or ownership interest -- in your home grows faster, and your total interest costs are far less than those for a 30-year loan.

With a 30-year mortgage, your total interest cost is higher, but you make payments over a longer period, keeping your monthly payments lower and your short-term [or current] housing costs more affordable.

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