Different Type of Mortgages: "Help With Your Mortgages Questions
Different Types of Mortgages

Two of the most common mortgages are the adjustable-rate mortgage and the fixed-rate mortgage.

Fixed-rate Mortgage

•The Fixed-rate mortgage has an interest rate that stays constant throughout the life of the loan. If, for example, the loan is termed for 15 years, the interest rate will be fixed to the initial one, regardless of the increase or decrease of the market rates.

•There are different pros and cons to the periods of the Fixed-rate mortgage. For instance, the 30-year-fixed rate may be a good option for people who do not plan to sell their home for many years, as the payments will usually be the same. The downside, however, is that interest rates are at their highest level with this option, as compared to shorter payment scheme of 20-year and 10-year-fixed-rate."