Fixed Rate Mortgages are the most popular type of home loan structure. With a fixed rate mortgage, you will pay the same monthly payment every month for the life of the loan—unlike adjustable rate mortgages, which adjust annually after the first five years to reflect current interest rates, which can increase or decrease the amount of a home’s monthly mortgage payment.
Calculate your potential new monthly mortgage payment in seconds with this handy calculator so you can make sure you have enough money left over each month for all your other expenses. Choose your rate and term—you might be surprised to see how affordable it is to own your home in less time than you thought. See how much interest you’ll pay over the life of the loan, and enter prepayment amounts to calculate their impact on your mortgage.
The most popular repayment terms for a fixed-rate mortgage is either 30 years or 15 years, however, 20 year mortgages are also available. 40 and 50 year mortgages are also now available and are most commonly used in areas with higher priced homes to keep homeownership in reach for qualified borrowers.
The interest rate on a fixed-rate mortgage will vary based on loan size, location, your credit score, the length of the loan, the amount of down-payment on a purchase, and whether or the mortgage loan product is either conventional, FHA, or a VA home loan.
That really depends on your personal preference and tolerance for risk. The difference between a fixed rate and an adjustable rate mortgage is simple. With a fixed-rate mortgage the interest rate is set for the life of the loan and will never change. With an adjustable rate mortgage, the interest rate can go up or down depending on what the rate is tied to and where the market is at the time of maturity.
