Fixed-Rate Mortgage Loans

Fixed-Rate Mortgage Loans are not necessarily harder to get than other loan options. In fact, fixed-rate loans are among the most straightforward to apply for. However, getting pre-qualified for a fixed-rate loan still depends on a combination of your credit score, income, and job security, debt-to-income ratio, and the down payments you are able to make.

Fixed-rate mortgages lock in a single interest rate for the full term of the mortgage, even if interest rates change significantly before the loan is paid off. That allows borrowers to make the same principal and interest payments for the full duration of the loan term (excluding property taxes and insurance). Adjustable-rate mortgages (ARMs) offer a fixed rate for an initial period (typically 5, 7, or 10 years) after which the rate may adjust to bring it in line with prevailing market interest rates. While ARMs may often offer better interest rates and lower payments than Fixed-Rate Mortgage Loans, these rates can change significantly when rates readjust.

No. It’s a myth that 20% is required; in fact, many applicants may be able to qualify with less. In most cases, borrowers who are not able to provide adequate down payments will need to pay for Private Mortgage Insurance as part of their monthly loan costs to cover the lender’s additional risk.

You can qualify for a fixed-rate loan by meeting your lender’s eligibility requirements for your credit score, income, and debt-to-income ratio, and by being able to provide a down payment of at least 10-20% of the value of the loan you are seeking.

Fixed-rate conforming loans can be used to purchase primary residences, second homes, and investment properties. Lenders offer fixed-rate financing for stand-alone properties, townhouses, apartments, and condominiums. Construction loans are often converted to fixed-rate mortgages once building work is complete.

Yes, at TVFCU, you can apply for your Fixed-Rate Mortgage using our secure online application.  In this online application, you’ll be able to submit basic financial information, upload documents, and start the pre-qualification process from anywhere. Final approval will still require further verification.

Yes, you do need to be a TVFCU member to apply for a Fixed-Rate Mortgage Loan. It’s easy to become a member. If you’re part of the Tennessee Valley, including North Georgia, chances are you already qualify for membership! Whether you’re an individual or a business, we make it easy for you to belong. You can become a member if:

• You live, work, worship, volunteer, or attend school in our 17-county community.
• You have a family member who’s already a TVFCU member.
• You share a household with a member, including domestic partners or live-in relatives.
• You’re temporarily away from the household (like a student or someone in the military).
• Your business or organization operates within our 17-county region.
• You are a member of the Audubon Society.