When seeking a mortgage, understanding the different types of fixed-rate mortgages is crucial. A mortgage professional may provide valuable insights into these options, helping prospective homebuyers make informed decisions.

Fixed-rate mortgages are popular among homebuyers due to their stability and predictability. With a fixed-rate mortgage, the interest rate remains constant throughout the loan term, offering borrowers a consistent monthly payment.

30-Year Fixed-Rate Mortgage

One of the most traditional options, the 30-year fixed-rate mortgage offers a lengthy term, spreading the payments over three decades. This results in lower monthly payments, making it a popular choice for buyers who plan to stay in their homes long-term and prefer predictable, steady payments.

15-Year Fixed-Rate Mortgage

Shorter in duration, the 15-year fixed-rate mortgage offers higher monthly payments but significantly lower total interest costs over the life of the loan. This option is ideal for borrowers who can afford higher payments and want to pay off their loan quickly, building equity faster.

20-Year Fixed-Rate Mortgage

Falling between the 30-year and 15-year terms, the 20-year fixed-rate mortgage strikes a balance. It provides relatively lower monthly payments compared to a 15-year loan while allowing homeowners to pay off their mortgage faster than a 30-year term. This option appeals to buyers seeking a middle-ground solution.

Biweekly Fixed-Rate Mortgage

Under this arrangement, borrowers make half of the monthly mortgage payment every two weeks, resulting in 26 half-payments or 13 full payments annually. This extra payment per year helps in reducing the principal balance faster, allowing homeowners to save on interest and pay off the loan sooner.