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The Thirty Year Fixed Rate Mortgage
 The thirty-year fixed rate mortgage is probably the most common and popular mortgage in the United States. In a 30 Year fixed rate mortgage, the mortgage payments are spread over thirty years reducing the monthly payments. For shorter term loans you pay much less in interest, but the payments are much higher. In a 30 Year fixed rate mortgage the interest rate is locked in. In other words the rate doesn't change for the entire life of the loan. In today's market, interest rates often fluctuate daily. The rate you see published in a ad may change until you "lock it in" with us by applying and being approved. Once "locked in" your rate remains the same. On the typical 30 Year fixed rate mortgage you end up paying thousands of dollars more in interest, however, the interest is tax deductible by 100%.
The Fifteen Year Fixed Rate Mortgage
The fifteen-year fixed rate mortgage is a good option for those who can afford a higher monthly payment. The main advantage of a 15 Year Fixed Rate Mortgage is typically the lower interest rate. A good general rule when it comes to mortgage rates is, the lower the term, the lower the rate. With a 15 year fixed rate mortgage you will save thousands in interest over the life of the loan, but you must be able to afford the higher monthly payment to compare the fifteen year fixed payment to the the thirty-year fixed mortgage payment. Please use our Mortgage Payment Calculator
Fixed Rate Mortgages At A Glance
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Loan Programs
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Advantages
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Disadvantages
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Fixed Rate Mortgages
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30 year fixed
15 year fixed
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- Monthly payments are fixed over the life of the loan
- Interest rate does not change
- Protected if rates go up
- Can refinance if rates go down
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- Higher interest rate
- Higher mortgage payments
- Rate does not drop if interest rates improve
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Money Saving Tip
You can reduce the years you pay on a note by paying extra principal each month. If you apply more than the amount due each month, that extra money goes directly towards reducing the principal of the loan and shortens the loan. A thirty-year mortgage can be reduced to a twenty or a fifteen year mortgage depending upon how much money you apply each month towards the principal in addition to your regular monthly payment. This option allows you to reduce the length of the note without strapping yourself with the higher fifteen-year fixed payment in case you experience a change in your financial situation.
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