Fixed-Rate Mortgages

A mortgage payment you can plan around.

Predictable principal and interest

Terms from 10 to 30 years

Purchase or refinance

Keep the same interest rate for the life of your loan.

A fixed-rate mortgage provides an interest rate that remains the same for the full term of your loan. That means your monthly principal-and-interest payment will not change, giving you greater predictability as you plan for homeownership.

Michigan First offers a number of fixed-rate mortgage terms from 10 to 30 years for eligible primary residences, second homes and investment properties.

Each payment applies a portion toward:

Principal and interest

Principal is the amount you borrowed and interest is the cost of borrowing the money.

Escrowed expenses, when applicable

Property taxes, homeowners insurance, mortgage insurance and other required charges.

Fixed-Rate Mortgage features

Michigan First fixed-rate mortgages offer:

Loan terms from 10 to 30 years
Competitive interest rates and low closing costs
Down payments as low as 3% for qualified borrowers
Financing for eligible primary residences, second homes and investment properties
No private mortgage insurance with a down payment of at least 20%
No prepayment penalties
Purchase, refinance, renovation, and new construction options
A consistent interest rate throughout the loan term

All loans are subject to credit approval, property eligibility and applicable underwriting and program requirements.

Choosing a Fixed-Rate Mortgage term

Michigan First offers eligible fixed-rate mortgage terms ranging from 10 to 30 years. The term you select affects your required payment and the amount of interest you may pay over time.

The lowest monthly payment is not necessarily the least expensive option overall. Your Mortgage Loan Officer can provide estimates for multiple terms so you can compare both the immediate payment and long-term cost.

Shorter Mortgage Terms

A shorter term, such as 10 or 15 years, generally provides:

A higher monthly principal-and-interest payment
Faster equity growth
Less total interest paid over the life of the mortgage
A shorter path to paying off the home

Longer Mortgage Terms

A longer term, such as 20 or 30 years, generally provides:

A lower required monthly principal-and-interest payment
More room in the monthly budget
A longer repayment period

When could a fixed-rate mortgage make sense?

A fixed-rate mortgage may be worth considering if:

You prefer a predictable monthly principal-and-interest payment
You expect to own the home for several years
You want protection from future increases in your mortgage interest rate
You are comfortable with the available rate at the time you apply
You prefer long-term payment consistency over a potentially lower introductory rate
You want to choose a shorter term to pay off your mortgage sooner
You do not want your mortgage rate tied to future market changes

A fixed rate provides predictability, but it does not automatically mean the mortgage will be the least expensive option for every borrower. Your loan term, closing costs, expected time in the home and available alternatives should also be considered.

Fixed-Rate Mortgage

A fixed-rate mortgage maintains the same interest rate for the full loan term. Your monthly principal-and-interest payment remains predictable, although taxes, insurance and other charges may change.

This option may appeal to borrowers who expect to remain in the home longer or prioritize payment stability.

Adjustable-Rate Mortgage

An adjustable-rate mortgage begins with a fixed introductory period. After that period, the interest rate and principal-and-interest payment may increase or decrease according to the loan terms.

An ARM may appeal to borrowers who expect to move within several years or who determine that the initial terms provide enough benefit to accept the possibility of later payment changes.

A Mortgage Loan Officer can help you compare the initial rate, estimated payment, future payment risk and overall borrowing costs of both options.

Explore Adjustable-Rate Mortgages

What to consider before choosing a Fixed Rate

Your Monthly Budget

Consider the complete housing payment, including principal, interest, property taxes, homeowners insurance, mortgage insurance and applicable association fees.

Your Expected Time in the Home

A fixed-rate mortgage may provide greater value when you expect to keep the home or loan long enough to benefit from long-term rate consistency.

Your Loan Term

A shorter term can reduce total interest but requires a higher monthly payment. A longer term reduces the required payment but generally increases total interest.

Your Down Payment

A larger down payment reduces the amount borrowed and may eliminate private mortgage insurance, but it also requires more cash upfront.

Your Available Savings

Avoid using every available dollar for the down payment. You may also need funds for closing costs, moving expenses, repairs and an emergency reserve.

Current Mortgage Options

Compare the fixed-rate mortgage with available adjustable-rate and other eligible loan programs. The best structure depends on the complete terms—not only the advertised interest rate.

Understanding your down payment and mortgage insurance

Michigan First offers fixed-rate mortgage options with down payments as low as 3% for qualified borrowers.

Your required down payment will depend on factors such as:

The selected mortgage program
The property type and intended occupancy
Your financial qualifications
The purchase price
Applicable loan limits
Whether mortgage insurance is required

A conventional fixed-rate mortgage with less than 20% down may require private mortgage insurance, commonly called PMI. PMI protects the lender - not the borrower - if the borrower does not repay the mortgage.

A down payment of at least 20% generally eliminates the need for PMI at closing. If you begin with PMI, you may be able to request its cancellation later after meeting applicable equity, payment-history and other requirements.

Fixed-Rate Mortgages for different property types

Eligible fixed-rate financing may be available for:

Primary Residences

A home you intend to occupy as your principal residence.

Second Homes

An eligible property you intend to use personally in addition to your primary residence.

Investment Properties

An eligible property purchased or held primarily to generate rental income or another financial return.

Costs may vary

Down payment, pricing, reserve and qualification requirements may vary significantly by occupancy type. Second homes and investment properties typically have different requirements than primary residences.

The Fixed-Rate Mortgage process

Discuss Your Homebuying Plans

Talk with a Michigan First Mortgage Loan Officer about your budget, property plans, down payment and preferred monthly payment.

Get Pre-Approved

Provide information about your income, assets, debts and credit so you can understand the mortgage amount for which you may qualify.

Compare Loan Terms

Review available repayment periods, estimated rates, principal-and-interest payments, mortgage insurance and closing costs.

Find a Home and Complete Your Application

Once you have an accepted offer, provide the property and purchase details along with any additional financial documentation.

Complete the Property and Loan Review

The property and application proceed through appraisal, title review, underwriting and final approval.

Review Your Final Terms and Close

Before closing, review the interest rate, monthly payment, closing costs and other mortgage terms provided in your final disclosures.