More information of Fixed-rate mortgage loan
When we are going to buy a house, one of the decisions we must make is whether to choose between a fixed or adjustable interest rate mortgage. Fixed rates are usually recommended for the long term, while variable rates are more oriented to shorter periods, since they are cheaper at the beginning.
Another advantage of fixed rate mortgage loans, such as the one we analyze here, belonging to the financial institution U.S. Bank, is that it provides stability and peace of mind, knowing that we will always pay the same amount each month, so we will not depend on the ups and downs of a reference index as happens with the variable or adjustable ones.
With this mortgage we can finance up to 95% of the value of the house, so it will only be necessary to provide 5% as down payment. However, it is likely that in order to finance more than 80% we will have to take out private insurance to serve as an extra guarantee.
Regardless of the percentage of the house that we finance, the maximum amount that can be financed for this loan is the maximum established by the agencies Fannie Mae and Freddie Mac. In case we want to obtain a higher amount, we will have to resort to the Jumbo loans also offered by U.S. Bank.
Español: Hipoteca de interés fijo de U.S. Bank