Fixed Rate Mortgages

Chris Hernandez

Thirty-year fixed rate loans are what most people think of when they hear the word “mortgage.” Fixed rate loans are also referred to as “fully-amortized” loans. One of the aspects that buyers like about fixed rate loans is that the payments stay the same for the life of the loan. Generally, these loans are offered in a 15- or 30-year duration.
A 30-year loan will provide larger tax deductions, as you will be paying more interest than principal during the first 23 years of the loan. A 15-year loan, on the other hand, is paid off twice as quickly and usually has a lower interest rate. You build more equity because your payments pay more principal. As mentioned earlier, you (or the seller) also can “buy down” your loan by paying more tax-deductible points up front, to lower your fixed interest rate.

Balloon Loan

A fixed loan that is amortized over a 30-year period but becomes due and payable at the end of a shorter term (i.e., 5, 6, 7 or 10 years). Some of these loans have an option to be extended with a new rate or rolled into another type of loan. Usually, the rates of these loans are lower than those for a regular 30-year fixed rate loan, but they are not recommended if you plan to stay in the home for a longer period of time.

Graduated Payment Mortgage (GPM)

A fixed-rate loan that has payments starting lower than the payments on a standard fixed rate loan, which increase by a predetermined amount each year for a specific number of years, usually five years.


Renowned for their unparalleled experience in Tahoe, Glenbrook, and Incline Village real estate, paired with unrivaled local insight and an unwavering work ethic, the duo consistently delivers the ultimate client experience. Whether it's a lakefront property in Tahoe, a cozy residence in Glenbrook, or a second home in the heart of Incline Village, Team Hernandez approaches each venture with unmatched enthusiasm, accessibility, and transparency.

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