Fixed Rate Mortgages

Fixed rate mortgages are probably the most common type of mortgage offered by lenders. Borrowers like them because the interest rate is fixed and they know what the monthly payment will be and can budget accordingly. The question is: Should you go with a 15-year mortgage or a 30-year mortgage?

When a borrower is opposed to their monthly mortgage rising and falling based on the latest interest rates, they are candidates for a fixed rate mortgage. Lenders are offering a 15 or 30 year option and some are even offering a 40 year mortgage. We are going to consider the pros and cons of both the 15 year fixed rate mortgage and the 30 year options. Remember: You should consult with a financial professional to determine your best option.

30 Year Mortgage Pros and Cons
15 Year Mortgage Pros and Cons
Find the Best 30 Year Mortgages
Find the best RefinanceMortgages

30 Year Fixed Rate Mortgage
30 Year Mortgage Pros		30 Year Mortgage Cons
Borrowers are able to budet for the monthly mortgage amount because their interest rate will not fluctuate.		Most of the mortgage payment amount for the first several years is applied to the interest only and not to the principal. Consequently, home equity is built slowly.
Monthly mortgage payments are lower than a 15 year mortgage.		Borrower pays more intereste over the life of the loan because of the length of the loan.
Due to lower monthly payments, borrowers may have some money they can invest that will provide a nice return.		Interest rates are typically higher than a 15 year loan.
The higher interest bill each year will increase the borrower's tax deduction and thus lower tax liabilities.

Home equity rates as low as 5.74% with intro rates as low as 4.74%

15 Y ear Fixed Rate Mortgage
15 Year Mortgage Pros		15 Year Mortgage Cons
Borrowers build home equity much quicker than with a 30 year loan.		Monthly mortgage payments can be much higher than with a 30 year loan.
Overall interest bills are much lower due to the shorter loan term.		Home buyers may not be able to afford as much house as they could with a longer term loan..
The interest rates are typically lower than those for 30-year loans.