Fixed Rate Mortgages
The most widely known mortgage type is the fixed rate mortgage. The major advantage of the fixed rate mortgage is that they present predictable housing costs for the life of the loan. The traditional favorite of all the fixed rate mortgages is the 30-year fixed although you may be presented with mortgage options ranging from 15 years up to 50 years.
Types of Fixed Loans
15-Year Fixed Rate Mortgage20-Year Fixed Rate Mortgage
30-Year Fixed Rate Mortgage
40-Year Fixed Rate Mortgage
50-Year Fixed Rate Mortgage
Advantages of Fixed over Adjustable Rate Mortgages
- Monthly payments are fixed over the life of the loan.
- Interest rates will not change.
- Borrowers are protected if rates increase.
- Borrowers can refinance if rates decrease.
Disadvantages
- The interest rate will not decrease if rates improve unless the borrower elects to refinance.
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