Skip to main content
fixed rate mortgage on a blurred background

The best mortgage is the one that fits your budget. Figuring out that best fit can be a challenge. Fortunately, White River Credit Union members have a partner that can assist them in reaching all their financial goals, and getting the right mortgage is a big step along that road.

What is a Fixed-Rate Mortgage?

A fixed-rate mortgage, sometimes called a “traditional” or “conventional” mortgage, is just what it says, a home loan in which you and the lender agree on the interest by contract and it doesn’t change for the life of the loan. By contrast, a variable-rate mortgage has built-in flexibility, the lender adjusts the rate at predetermined periods based on outside factors which can work in the borrower’s favor or not.

What Are the Benefits of a Fixed Rate Mortgage?

  1.   Your interest rate is locked-in, you know what you owe each month. If rates drop, you can refinance (refi) but, if rates rise, you just smile and get on with life.
  2.   Mortgage or refi proposals with fixed rates are easier to compare among lending institutions.
  3.   No prepayment penalties — extra payments are usually allowed without additional fees and the extra money repays principle, potentially shortening the length of the loan.
  4.   Fixed-rate contracts often have more options — your loan term can be 10, 15, 20, 25 or 30 years.
  5.   If the mortgage payment doesn’t rise but your income does, you have, in effect, a lower loan payment.

How Do I Qualify?

Getting a mortgage depends on many factors:

  1.   You’ll need a down payment. Putting 20 percent down is great if you can. If not, some lenders will take as little as 3 percent.
  2.   You’ll need a qualifying income-to-debt ratio. For example, “Your house payment should be no more than 25 percent of monthly” income is a common rule of thumb.
  3.   You should have a strong credit history and a stable income. If you’ve borrowed before and repaid on time, if you have a good job that is likely to continue, you’re a better loan candidate.
  4.   Having a cash reserve allows you to meet basic expenses in case of some disaster.

I Need Help Getting My Mortgage

The Enumclaw Plateau economy is driving more home sales and offering refinancing options many homeowners are considering. White River Credit Union provides checking & savings accounts and many other services. Contact us today and get started on owning your own home or strengthening your overall financial position.

© 2020 White River Credit Union