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One of the most popular options is a fixed-rate mortgage. Offering a fixed interest rate from typically one to thirty years this type of mortgage offers financial security for many families. Though fixed mortgage has many advantages, we should remember that it also has some disadvantages. Knowing the ins and outs of a fixed mortgage will help you decide whether such is right for your particular wants and needs.

Residential loans which provide the same interest rate for a predetermined term are referred to as “fixed mortgages.” Mostly they are either fifteen- or thirty-year mortgages. You’ll pay less each month with a thirty year fixed rate mortgage, as opposed to a fifteen year fixed rate mortgage. If you want to pay off your mortgage over a longer period of time, you should take out a longer mortgage. With a longer mortgage term, you’ll be paying much more interest over the life of the loan.

There are some fixed mortgages that only offer a fixed rate for up to 12 months. These are typically offers designed to attract new customers who would otherwise have difficulty qualifying for a mortgage. You could sign up for an introductory rate of interest that won’t be in effect very long into the loan. When the fixed interest rate has run its course, the rate goes on to fluctuate in correspondence with the housing market. Unfortunately this is not always a good thing! Of course the disadvantage to a fixed mortgage is that when the housing market lowers its prices, you will not benefit from a lower rate. Those with an adjustable rate mortgage will pay eitherhigher and lower rates depending upon the housing market.