Fixed Rate Mortgages

The traditional fixed-rate mortgage has a constant interest rate and monthly payments that never change over the duration of the loan.  The most common fixed rate period options are 30 year fixed, 25 year fixed, 20 year fixed, 15 year fixed, and 10 year fixed.  There are also less common term options for a 40 year fixed, as well as 5 year options.

As a general rule, Fixed Rates may be a good choice if you plan to stay in your home for seven years or longer. If you plan to move within seven years, then adjustable-rate loans are usually cheaper. As a rule of thumb, it may be harder to qualify for fixed-rate loans than for adjustable rate loans. When interest rates are low, fixed-rate loans are generally not that much more expensive than adjustable-rate mortgages and may be a better deal in the long run, because you can lock in the rate for the life of your loan.