Fixed rate mortgages

These are the most common and traditional mortgages available. They are available in a variety of terms, but are most commonly amortized over either 30 or 15 year schedules. Fixed rate mortgages offer the security of having a mortgage payment that remains constant over the life of the loan.

Fixed Rate Mortgages are a good idea when interest rates are low and when you plan on staying in the home for a long period of time.
A 30 year fixed rate mortgage has a lower monthly payment than a 15 year fixed rate mortgage at the same rate due to the longer amortization period. This would enable a borrower to qualify for a larger loan amount. There is a trade-off, however: over the life of the loan, the borrower pays almost twice as much total interest as they would pay with a fifteen year loan.