Mortgage & Help » Mortgage Features » Fixed Rate Mortgages

The most common type of home loan is the fixed-rate mortgage. The interest rate remains the same for the life of the loan, so the principal and interest remain the same, too.

Fixed-rate mortgages

Main benefit:

Monthly payments don't change.

(Unless property taxes, insurance premiums or homeowners or condo association fees change.)

Main drawback:

Generally, the interest rate on an adjustable-rate mortgage is lower.

(But adjustable rates can go up over time.)

A mortgage's term is the number of years you have to pay it. You have two main choices: a 30-year term or a 15-year term.