A Rate That Never Changes

Rates as of April 2026. Assume 20% down payment, owner-occupied single-family home, excellent credit (760+). Your rate may vary. 1 point = 1% of loan amount paid upfront to reduce rate. APR includes estimated fees. Payment shown is principal + interest only; does not include taxes, insurance, or PMI.

Example calculations for illustration purposes only. Assumes no prepayments. Actual figures will vary based on your rate, loan amount, and payment timing.

• Can I pay off a fixed-rate mortgage early?
  Yes — you can make extra principal payments at any time with no restrictions. Making one additional monthly payment per year on a 30-year loan can shave 4–5 years off your loan and save tens of thousands in interest. There is no minimum additional payment required — even $50/month extra toward principal makes a meaningful difference over time.
• Is there a prepayment penalty on fixed-rate mortgages?
  Federal Crown Bank does not charge prepayment penalties on conventional fixed-rate mortgages. You can pay extra toward principal, make lump-sum payments, or pay off the loan entirely at any time without penalty. Always verify there is no prepayment penalty clause in your specific loan documents before signing — it is rare on conventional loans but should be confirmed.
• How do mortgage points affect my interest rate?
  Mortgage points are prepaid interest paid at closing to buy down your interest rate. One point equals 1% of the loan amount (so 1 point on a $320,000 loan = $3,200). Each point typically reduces your rate by approximately 0.25%. Whether buying points makes sense depends on your break-even period: divide the upfront cost by your monthly savings to see how many months until you recoup the cost. Points favor long-term homeowners over sellers.
• When is an ARM a better choice than a fixed rate?
  An ARM makes financial sense if you have a known short time horizon in the home — for example, you're purchasing for a 3–5 year work relocation, or you're buying a starter home and plan to move up in 5 years. In these scenarios, you never reach the adjustable period and benefit from the lower initial ARM rate throughout your ownership. If there's any uncertainty about your timeline, a fixed rate eliminates the risk.
• Can I refinance from an ARM to a fixed-rate mortgage?
  Absolutely — converting from an ARM to a fixed-rate mortgage is one of the most common refinance scenarios. If you originally took an ARM expecting to move but decided to stay, or if your ARM is approaching its adjustment period and fixed rates are acceptable, a refinance locks in stability. The process is identical to any other refinance: application, appraisal, underwriting, and closing (30–45 days).