Industry News

Fixed-rate mortgage changes face of real estate

Loans provide refi opportunities to increase consumer spending, stimulate economy

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In the emerging public debate over what type of mortgage products are best for American consumers, the Homeownership Alliance on Thursday reiterated the extraordinary value that 30-year, fixed-rate, prepayable mortgages provide homeowners and the U.S. economy as a whole. The Alliance – a coalition of trade and professional associations, consumer advocacy groups and housing industry organizations – praised the 30-year fixed mortgage for offering borrowers certainty on the size of their payment for up to three decades, providing peace of mind and the ability to plan to a financial future. The Alliance said this type of mortgage gives borrowers the ability to refinance and put money back into the economy, increases home ownership and remains more affordable. "With the many financing alternatives available to consumers, Americans still choose the fixed-rate mortgage. Fixed-rate financing provides long-term financial security to homeowners and it allows more Americans to o...