It’s a type of mortgage that attracts interest rates at an agreed interest rate throughout the loan term. To that end, fixed-rate mortgages are especially appealing to consumers who want to predict how much they should expect to pay at the end of the loan term.

Fixed mortgages are classified based on the loan term. The terms range from 10 years to 30 years. The increments are usually 10, 15, and 30, with 30 being the most common, followed by 15. Let’s break it down and see what’s expected for each type of mortgage.

As stated, they are the most common, perhaps because they allow the borrower more time to service the loan. It also makes it easier to spread the interest rate, meaning you’ll be paying less money per month. The downside is, of course, you’ll end up paying more money. They are especially appealing to those who want to keep their monthly spending low.

When choosing a 30-year fixed mortgage, you should weigh the benefits of paying less monthly versus paying off your loan quickly and avoiding higher interest over time.

Most financial institutions offer a 20-year fixed mortgage, but it’s not as popular as the 30-year fixed mortgage. As with other long-term fixed mortgages, a 20-year fixed mortgage tends to attract a higher interest rate because the lender carries the risk of not recouping their money back when a borrower is unable to settle the loan.

A 20-year fixed mortgage may be a viable option for borrowers who want to make a lower monthly payment but can’t afford to take the 15-year fixed mortgage.

A 15-year attracts a lower interest in comparison with a 30-year term loan. Additionally, you’ll save more on interest rates because you’ll service it faster. You should consider taking a 15-year fixed mortgage instead of a 30-year mortgage if you don’t mind the higher monthly payments because you’ll reap more benefits in the long run.

A year fixed rate mortgage is recommended because you’ll pay less in interest. However, you must be ready to make higher monthly payments. Moreover, it’s appealing to homeowners who want to offset a longer fixed rate loan.

There isn’t one size fits it all when it comes to the interest rate you’re charged for a fixed mortgage. There are several factors, including your credit score, that a lender considers before arriving at a rate. Here are good rates for the different types of fixed mortgages.

• 30 years – 5.480%
• 20 years – 5.590%
• 15 years – 4.820%
• 10 years – 4.950%

Fixed mortgage rates have many benefits, including being predictable and cushioning the borrower from rising interest rates. You should ensure you have a good credit score because it will affect how much interest rate the lender charges you. Most importantly, it can help to take a shorter-term loan if you want to reduce how much interest rate the borrower charges you. However, you should be ready to make a higher monthly payment.