How can we help?

Popular FAQs

Fixed-rate mortgage

Predictable payments for the life of your loan

With a fixed-rate mortgage, you're protected from rising interest rates, no matter what.

Get started
‍

What is a fixed-rate mortgage?

Fixed-rate mortgage basics

  • A fixed-rate mortgage has the same interest rate and monthly principal payment for the entire term of the loan.
  • Fixed-rate mortgages are available in conforming or jumbo loan amounts.
  • The 30-year fixed-rate mortgage is the most common loan type, but a 20-year or 15-year term could make sense if you want to pay off your mortgage sooner.

Fixed-rate mortgage benefits

  • You get the comfort of knowing your payments won't increase even if mortgage rates go up.
  • Predictable monthly payments make it easier to set your budget and plan for future expenses.
  • Fixed-rate mortgages require down payments as low as 3%, which makes them a great choice if you are buying a home on a budget.
‍

How long does a fixed-rate mortgage last?

You may see fixed-rate mortgage loans that last anywhere from 10 to 40 years. Below is a comparison of some of the most common terms for fixed-rate loans.

30-year fixed-rate mortgage

  • Monthly payment is lower than a 20- or 15-year term
  • Interest paid over the full loan term is higher than a 20- or 15-year term
  • May qualify for a larger loan amount

20-year fixed-rate mortgage

  • Monthly payment is higher than a 30-year term, and lower than a 15-year term
  • Interest paid over the full loan term is lower than a 30-year term, and higher than a 15-year term

15-year fixed-rate mortgage

  • Monthly payment is higher than a 20- or 30-year term
  • Interest paid over the full loan term is lower than a 20- or 30-year term

Other mortgage loan types to consider

Adjustable-rate mortgage

Lower introductory rate, which changes periodically in the future

Learn more

Learn more

Jumbo loan

Larger loan amounts for buying or refinancing

Learn more

Learn more

FHA loan

Flexible credit and income guidelines with down payments as low as 3.5%

Learn more

Learn more

VA loan

Financing for service members through the Department of Veterans Affairs

Learn more

Learn more

Talk with a home mortgage consultant about loan amount, loan type, property type, income, first-time homebuyer, and homebuyer education requirements to discuss eligibility.
FHA loans have the benefit of a low down payment, but consider all costs involved, including up-front and long-term mortgage insurance and all fees. Ask your home mortgage consultant to help you compare the overall costs of all your home financing options.

Get a customized rate and payment

See how much you could qualify to borrow and what your estimated rate and payment would be. It takes just a few minutes and won’t affect your credit score.

Customize your rate
‍

Fixed-rate mortgage FAQs

A fixed mortgage rate means your interest rate stays the same for the life of the loan, which keeps the principal and interest portion of your payment predictable. However, property taxes or homeowners insurance may change over time. If your mortgage payment includes these costs, your total monthly payment may fluctuate.

The main difference is how the interest rate works. With a fixed-rate mortgage, the interest rate stays the same for the life of the loan. With an adjustable-rate mortgage (ARM), the interest may change periodically after an initial fixed period.

A fixed-rate mortgage may be a good option if you plan to stay in the home long term or prefer more predictable mortgage payments. It may also make sense if interest rates are relatively low. One of our mortgage consultants can help you compare scenarios to determine which option may be right for you.

Lenders typically evaluate a few basic factors when determining eligibility, such as:

  • Credit score: Conventional mortgages often require a credit score of at least 620, but other types of mortgage programs, such as FHA loans, may allow lower scores.
  • Income and employment history: You may be asked for recent pay stubs, tax returns, and W-2 forms to verify your work history.
  • Debt-to-income (DTI) ratio: DTI compares your monthly debt payments to your gross monthly income. Many lenders prefer DTIs below 36%, but some may allow higher ratios.
  • Down payment amount: Your down payment can influence both your mortgage options and interest rate.
  • Assets and savings: Lenders may review your assets and savings to better understand your overall financial stability.
  • Property value: Knowing the property value helps lenders calculate the loan-to-value (LTV) ratio, which can affect loan approval, interest rate, and loan terms. 
Mark Shaheen

Mark Shaheen

NMLSR ID : 453516

408-608-4422
1021 Blossom Hill Rd San Jose, CA 95123
Visit my site >

If you extend your loan term, you may pay more interest over the life of your loan.

If you are a service member on active duty, an eligible spouse, partner, or dependent, or currently receiving SCRA benefits, please consult with your legal advisor prior to seeking a refinance of your existing mortgage loan. In some cases, a refinance may impact your eligibility for benefits under the Servicemembers Civil Relief Act or applicable state law.

With a low down payment, mortgage insurance will be required, which increases the cost of the loan and will increase the monthly payment.

‍ Equal Housing Lender

Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A.

DT1-05142027-12-8929380-1.1