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Get into Your New Home With a Fixed Rate
Fixed Rate Mortgages: Predictable and Stable
At a Glance
Most common type of mortgage
Interest rate does not change
Fixed principle and interest payment
Traditional, fixed rate mortgages are most likely what comes to mind when you think about a mortgage. These mortgages are available for terms ranging from 10 to 30 years, with a minimum down payment of as little as 3%. And the interest rate you pay remains stable throughout the life of the loan, which means even if rates go up, your rate stays the same.
Featured Mortgage Rates
*Offers are subject to credit approval. REG = Regular Rate. APR = Annual Percentage Rate. Read Full Disclosures.
Benefits of a Fixed Rate Mortgage
- Predictable monthly payments and lower interest rates
- Multiple terms available
- Private mortgage insurance (PMI) can be canceled when 20% equity is reached
- Can be used for second or vacation homes
Qualifications for a Fixed Rate Mortgage
- Good credit score, usually 620 or higher
- Lower debt-to-income (DTI) ratio, 45% maximum
- Down payment of at least 3% (20% to avoid PMI)
How it works:
There are many factors to consider when you’re trying to figure out what your monthly payments on a home will be, including property taxes, homeowners’ insurance, PMI, etc. Property taxes can be especially important to consider. While the statewide average is around 1.36%, property tax rates are set by individual counties in Pennsylvania and can vary widely. Rest assured though—your Citadel Mortgage Advisor will make sure you know what your payments will actually look like before you sign.
This chart provides an example of the largest part of your monthly mortgage payment: the principal (amount you’ve borrowed) and interest (the cost of borrowing that money). With a fixed rate mortgage, the interest rate is the same from your first to your last payment, so your payments remain relatively steady throughout the life of the loan. Tax rates and other fees may affect the payment total, but the amount you’re paying on principal and interest will be the same every month.
For example, if you purchase a home for $200,000, here’s how the monthly principal and interest amount will change based on your down payment and loan term.
*These payment amounts are for example only and do not include applicable taxes and insurance premiums. Actual payment obligations will be greater.
Wondering what your monthly payments might look like?
Estimate my payment
Citadel Stories
Preparing to get married, Ben and Sophia were also looking to purchase their first home in Ben’s hometown of Jenkintown, PA, in the Philadelphia suburbs.
Ben, a police officer, and Sophia, a physical therapist, had been renting an apartment since graduating from college 2 years earlier, but really wanted a home of their own to start off married life. Even with limited savings, they were eager to get started looking at houses. Much to their dismay, their first offer fell through when a property inspection revealed serious issues with the home. They made an offer on another property that fell through when the seller backed out.
With their wedding fast approaching, Ben and Sophia came to Citadel and met with Senior Mortgage Loan Processor Deborah. She walked them through their options with our First Time Home Buyer’s Program, which allowed Ben and Sophia to get a fixed-rate mortgage with a lower down payment and reduced Private Mortgage Insurance (PMI).
They decided to take a chance and make an offer on a third property and were excited to learn the offer had been accepted. They were able to close on their new home just after returning from their honeymoon.
Contact an Advisor
Not sure yet? No problem. Our Loan Advisors will help answer your questions and walk you through every step of the loan process.
Frequently Asked Questions
Yes, homeowner’s insurance is required for everyone who has a mortgage. As stated in your mortgage contract, you need to maintain adequate homeowner’s coverage at all time to protect your interest and the collateral interest.
Simply complete an online application! Complete your information to the best of your knowledge and an experienced mortgage loan originator will contact you to discuss your options.
Once your application has been approved, information regarding locking in rates will be provided. You can apply for a mortgage online, call the Customer Service Center at (800) 666-0191 or visit a Citadel branch.
Most tax collectors do not provide information electronically. If your tax collector doesn’t provide the information we will contact you and request that you send the bills in to Mortgage Servicing.
Your Homeowners Insurance agent should send your annual statement to us automatically. If you change insurance providers please let us know immediately so we can update our records and avoid missed invoices.
Still have questions? Take a look at our Tools & Resources.
Citadel is an Equal Housing Lender.
Easy Refinance Program
Rate expressed as Annual Percentage Rate (APR), and is subject to change without notice. Offer can be withdrawn at any time. APR shown is for first-lien position loans up to 90% Loan-To-Value (LTV) on single-family owner-occupied properties in PA, NJ, MD, and DE. Various APRs and terms are available. Loans above $500,000 will require borrower to purchase title insurance. Loans above $400,000 will require an appraisal. Fees from current mortgage lender may apply. LTVs above 80% must escrow taxes. LTVs below 80% may escrow taxes at request of homeowner. Offer is subject to credit approval, income verification and market value assessment. Existing mortgage loans must be current and have no late payments in the last 12 consecutive months. Property insurance is required. If the collateral is determined to be in an area that has special flood areas, flood insurance will be required as well. Properties currently listed for sale are not eligible for this promotion. Property cannot be a co-op or mobile home. Minimum $50,000 in non-Citadel mortgage balances. Not available for purchasing new property. *Rate as of .
Traditional Mortgage
Fixed Rate Mortgage Terms
Rate expressed as Annual Percentage Rate (APR), and is subject to change without notice. Offer can be withdrawn at any time. APR shown is for first-lien position loans up to 95% Loan-To-Value (LTV) on single-family owner-occupied properties in PA, NJ, MD, and DE. Various APRs and terms are available. Loans will require borrower to purchase title insurance and appraisal. Lender fees will apply. LTVs above 80% must escrow taxes. LTVs below 80% may escrow taxes at request of homeowner. Offer is subject to credit approval, income verification and appraisal. Existing mortgage loans must be current and have no late payments in the last 12 consecutive months. Property insurance is required. If the collateral is determined to be in an area that has special flood areas, flood insurance will be required as well. Properties currently listed for sale are not eligible. Property cannot be a co-op or mobile home. Other restrictions apply on cash-out mortgage loans. Rate as of .
Adjustable Rate Mortgage (ARM)
An Adjustable Rate Mortgage (ARM) means that your payment may change in the future. Citadel ARM mortgages have a fixed rate for a period of time, then rates can adjust semi-annually. The fixed rate period varies based on the ARM loan you select and is shown right in the name of the ARM loan. Citadel offers two ARM loans: a SOFR 7/6 ARM and SOFR 10/6 ARM. The ARM numbers, “7/6”, show how long the initial fixed rate lasts and how often the rate can change afterward.
For Example:
• A 7/6 ARM has a fixed interest rate until the 84th month (7 years) and can change every 6 months after.
• A 10/6 ARM has a fixed interest rate until the 120th month (10 years) and can change every 6 months after.
What is a SOFR ARM?
SOFR is Secured Overnight Financing Rate, and is a referenced rate established to replace LIBOR (London Interbank Offered Rate). The Secured Overnight Financing Rate (SOFR) is a broad measure of the cost of borrowing cash overnight collateralized by Treasury securities.
How is my rate calculated?
The initial fixed interest rate is based on interest rate, loan amount, and total term of the loan when your loan is closed. This is the discounted rate and lasts for 7 or 10 years depending on the ARM loan selected.
The Adjustable Interest Rate is based on an interest rate index plus a margin. All of our Citadel ARM mortgage interest rates are based on the 30-Day Average SOFR rate, rounded to the nearest 0.125% (currently .08%). More information about this index is available at SOFR Averages and Index Data - FEDERAL RESERVE BANK of NEW YORK (newyorkfed.org). Our current margin is 2.750%.
How can my Interest Rate change?
Your interest rate can adjust when the initial fixed interest rate period ends, and every 6 months thereafter. Your interest rate will never increase or decrease more than 5 percentage points during the first adjustment, and 1% with each adjustment after the first, over the life of the loan.
