QandAs: Loans

What are the most common terms for a Fixed Rate Mortgage?

Answer:
Most fixed rate mortgages have a length of 15

or 30 years. Your monthly payment will be lower on a 30 year loan since you are paying off the debt over a longer period of time. However, you will pay more total interest than you would on a 15 year loan.

If you can afford the higher payments, opting for a 15 mortgage will also get you a slightly lower interest rate. A third option is a balloon mortgage, which offers you the lower monthly payments of a 30 year loan , but must be paid off at the end of 15 years. The ending balance, or balloon, can be refinanced with a new mortgage.

Today, with people living longer some mortgage lenders are now offering 45 year term loans.

If you ask your neighbor I think you'll find that the most common term Fixed Rate Mortgage is a 30 year mortgage.


	more Q&A sessions like this
	What is a conventional mortgage loan? ARM or Fixed Rate Mortgage Loan? What is a 30 Year Fixed Rate Mortgage Loan? What is a Fixed-Rate Mortgage Loan? What are the benefits of a fixed rate mortgage? What are the cons of an Interest Only mortgage loan? What is a VA Mortgage? What is the most common type of Fixed Rate Mortgage? What is a Convertible ARM? What is a 40-Year Fixed Loan?