This is the most common loan arrangement in the U.S. With a fixed-rate mortgage the loan's principal
and interest are amortized, or spread out evenly, over the life of the loan, giving you a
predictable monthly payment.
The upside is, if rates are low, you can lock in for as long as 30 years and protect
yourself against rising rates. However, if rates fall you can't change your rate without refinancing the
loan, and that could cost money.
The 30-year Fixed-Rate Mortgage, the most popular and easiest to qualify for, will give
you the lowest payment. But you can also get a 20-, 15- and even a 10-year fixed-rate mortgage if you wish
to save interest and pay your home off sooner.
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