What is a Fixed Rate Loan?
Like the name implies, a fixed rate loan is a loan where the interest rate and payment remains the same throughout the entire duration of the loan, unlike an adjustable rate mortgage loan where the interest rate may reset periodically.
A fixed rate loan is generally used to purchase big-ticket items like a new car, a boat or a home. In fact, fixed rate home mortgage loans are the most popular option for homebuyers in the United States. This is because a fixed loan offers a consistent monthly payment amount over the life of the loan.
Often, a fixed loan may have a higher interest rate than an adjustable one precisely because the interest rate remains constant for the loan's duration. As a general rule, longer term loans will have a slightly higher interest rate than loans of shorter duration due to interest rate risks or the possibility of rate adjustments over the loan's duration.
What are the Benefits of a Fixed Rate Loan?
A fixed rate loan's biggest benefit is that the interest rate does not change over the course of the loan. In an environment of rising interest rates, this can offer security in terms of budgeting for your monthly expenses because a fixed rate loan option provides a consistent, predictable monthly payment. Your interest rate and principal payment remains constant throughout the length of the loan.
If you're planning on making home improvements or a cash-back refinancing of your home, Blackhawk Bank offers a number of fixed rate options, including a fixed rate home equity loan. This means you can lock in the interest rate and principal payment for your home improvements, making it easier to keep to your monthly budget and providing you with peace of mind.
At our Blackhawk Bank branches in Southern Wisconsin and Northern Illinois we offer fixed rate loans that provide:
- Competitive Rates
- Fully locked interest rate for the life of your loan
- Easy-to-understand loan terms and less paperwork
Apply for Your Fixed Rate Mortgage Loan Today
Speak with one of our team members to apply for a fixed rate mortgage or home equity loan today. We offer flexible options and superior service to help you pick the perfect loan for your Southern Wisconsin and Northern Illinois needs. We work with you from the application process through closing to ensure a smooth process.
We'll even work with you to create a loan program that will meet all of your financial needs and goals. Are you ready to get started?
Click here and start the application process today!