With a fixed rate mortgage, the interest rate does not change for the term of the loan; the monthly payment is always the same.
Typically, the shorter the loan period, the more attractive the interest rate will be.
Payments on fixed-rate fully amortizing loans are calculated so that the loan is paid in full at the end of the term. The most common terms are 15, 20 or 30 years.
In the early amortization period of the mortgage, a large percentage of the monthly payment pays the interest on the loan. As the mortgage is paid down, more of the monthly payment is applied toward the principal.
30-year fixed rate mortgage is the most popular type of loan when borrowers can lock into a low rate.
15-year fixed rate mortgage allows you to pay off your loan quicker and lock into an attractive lower interest rate.