Are fixed rate mortgages truly fixed?

Asked by Nickjflint, Brooklyn, NY Thu Apr 25, 2013

A fixed rate mortgage will always fluctuate with the prime rate set by the Federal Reserve right? I'm trying to understand how much a fixed mortgage can actually change over time. Thanks!

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Rocco Guercio’s answer
Rocco Guercio, Mortgage Broker Or Lender, Massapequa, NY
Thu Apr 25, 2013
Hi,

A fixed rate mortgage means that the interest rate is fixed for the life of the loan. For example if you take out a 30 year Fixed rate mortgage, this means that the interest rate you got at the closing will be the same rate for 30 years. A fixed rate can not change.

Rocco Guercio
Sr. Mortgage Specialist
Equity Loans, LLC
347-462-4210
0 votes
Javier Menes…, Mortgage Broker Or Lender, Melville, NY
Thu Apr 25, 2013
Fixed rates are just that, fixed! Once you close on your loan, whatever rate is the one you locked in for, that's the rate you'll have for the term of the loan as long as its a fixed rate. This is how it goes with every lender out there.

If my response was helpful, consider clicking BEST ANSWER!

Javier Meneses
Senior Loan Officer
NMLS #23130
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
jmeneses@snb.com
(516) 606-9648 Cell
(631) 659-2011 Office
(516) 918-5383 Fax
1 vote
Lior Raviv, Agent, woodhaven, NY
Thu May 2, 2013
Yes its fixed your interest does not change. Your monthly payment can change if your property taxes are included and they go up, your monthly payment will be adjusted accordingly.
0 votes
Curly Sue, , Texas
Thu Apr 25, 2013
Fixed is fixed...it does not fluctuate.
0 votes
Mitchell Fel…, Agent, Brooklyn, NY
Thu Apr 25, 2013
Dear Nickjflint:

I am not a mortgage banker or broker but with my 20 years of experience as a real estate agent I can tell you that...

With a fixed mortgage the interest rate never changes after the loan is consummated. When you apply for a loan the bank will tell you what type of rate they can offer you on that day based on the prevailing rate at that time. Once you submit an application, you can choose to "lock-in" that rate immediately or let the rate be set 3 days prior to the closing. People who do not lock-in do so because they feel confident that rates will not go up and/or go down. People who are concerned that rates may go up, lock-in. The thing is that when you lock-in, you have to pay a lock-in fee which typically is credited back to you at the closing table. Also, when you lock-in you do so for better or worse, in other words, if the rates go down, you are stuck with the higher rate (unless you want to lose the lock-in fee and go with the lower rate.

The only mortgages with a rate that changes after the closing are adjustable type mortgages. If I can be of further assistance please contact me direct. Good luck!

Sincerely,
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
Email: MitchellSFeldman@aol.com
0 votes
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