There are lots of different types of mortgages out there but the most popular mortgage is a fixed-rate mortgage. A fixed-rate mortgage has a fixed interest rate for the entire term of the loan. The interest rate is determined at the loan’s origination. One of the main advantages of a fixed-rate mortgage is that the loan payment amounts will stay the same for the life of the loan and will not fluctuate with interest rate movements.
Lenders offer 50, 30, 20, and 10-year fixed loans. The two most popular are the 30 and 15 year fixed loan. A 30-year fixed loan amortizes over thirty years, with the majority of early payments going toward interest, later payments go mostly toward the principal. A 15-year fixed loan, amortizes over fifteen years, and significantly reduces the amount of interest paid on the loan.
When considering a mortgage understand and measure risks of all the different types of mortgages.
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ABOUT THE AUTHOR: Rachel is a professional digital marketing expert, real estate aficionado with a lot of knowledge in the area of marketing, SEO, Social Media. Her company, SEO Babe, offers digital marketing, SEO plans, web design, and related services.