When it comes to finding one of the best fixed mortgage interest rates in the Country, start your search at interestfixed.com.

Please note that the rates listed in the survey are NOT for fixed rate second mortgages. Please simply use the survey to reach out to the various lenders, brokers, and banks to discover if they are currently offering second mortgage in your area. You may also want to contact some local banks and credit unions.

An Interest Only mortgage only requires monthly interest payments. Since you are not paying any principal, this can lower your monthly payment. However, since your mortgage's principal balance is not decreased, you will have a balloon payment at the end of the mortgage's term. Some Interest Only mortgages will also be adjustable rate mortgages (ARM). An Interest Only ARM will often have a period where the interest rate is fixed, and then it is adjusted annually. This calculator assumes that the interest rate for your Interest Only Mortgage remains fixed for the entire term.

A fixed rate mortgage has the same payment for the entire term of the loan

Definitions:

Fixed Rate Mortgage

A fixed rate mortgage has the same interest rate and monthly payment throughout the term of the mortgage. The payment is calculated to pay-off the mortgage balance at the end of the term. The most common terms are 15 year and 30 years.

I am not clear with the types of mortgages that I am being offered. Let me explain my situation.

 I received a commitment letter stating that I am approved for a mortgage (though I filed bankruptcy 3 years ago but my spouse who is co-borrower has excellent credit – about 720), 2/28

Coming out of a bankruptcy I think you should consider a loan with more stable monthly payments. It doesn't have to be a 30 year fixed, perhaps a 5 year fixed would work. Interest only features allow you to make a smaller monthly payment but don't build any equity. If you utilize an interest only loan just to be able to qualify then you are basically leasing the home with full responsibility for repairs. You might as well rent from someone else in my opinion.

The advantages:

The advantage is that you can lock in a fixed interest rate over the life of the loan with this program. I think that is the main reason behind its popularity.

Fixed-rate interest-only loan is a new product to help the borrowers with flexibility under the present condition of the market.

This loan program carries both the stability of a fixed rate and the flexibility in payment as in interest-only loan.

The Disadvantages:

The drawback is that as you are not paying interest on your mortgage loan, equity is not built up in your home.

Relative performance in fixed interest is largely driven by two dimensions:

Bond maturity and credit quality . Bonds that mature farther in the future are subject to the risk of unexpected changes in interest rates. Bonds with lower credit quality are subject to the risk of default. Extending bond maturities and reducing credit quality increases potential returns.

A fixed interest rate loan is a loan where the interest rate doesn't fluctuate during the fixed rate period of the loan.

This allows the borrower to accurately predict their future payments. Variable rate loans, by contrast, are anchored to the prevailing discount rate.

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